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)
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Have months of self-isolation, lockdown and working from home irrevocably changed what we will put on once we go out again? For a long time, the assumption was yes. Now, as restrictions ease and the opening up of offices and travel is dangled like a promise, that expectation is more like a qualified “maybe.” But not every country’s experience of the last year was the same, nor were the clothes that dominated local wardrobes. Before we can predict what’s next, we need to understand what was. Here, eight New York Times correspondents in seven different countries share dispatches from a year of dressing.
Italian Vogue called “a luxury version of classic two-piece sweats.”
Fabio Pietrella, the president of Confartigianato Moda, the fashion arm of the association of artisans and small businesses, said that while consumer trends indicated a shift from “a business look to comfort,” it was “not too much comfort.” Italian women, he said, had eschewed sportswear for “quality knitwear” that guarantees freedom of movement but with “a minimum of elegance.”
flyest city on the planet.
In the Senegalese capital, at Africa’s westernmost tip, men in pointy yellow slippers and crisp white boubous — loosefitting long tunics — still glide down streets dredged with Saharan dust. Young women still sit in cafes sipping baobab juice in patterned leggings and jeweled hijabs. Everyone from consultants to greengrocers still wears gorgeous prints from head to toe.
Occasionally they now wear a matching mask.
While much of the world was shut up at home, many people in West Africa were working or going to school as normal. Lockdown in Senegal lasted just a few months. It was impossible for many people here to keep it up. They depend on going out to earn their living.
the poet and revolutionary Amílcar Cabral loved.
joint report by the Boston Consulting Group and Retailers Association of India.
While infections were low during the winter, the past few weeks have seen cases rising to staggering levels in many parts of the country. Right now, it looks as though many people will be working from home for most of 2021 too.
For Ritu Gorai, who runs a moms network in Mumbai, that means she has barely shopped at all, instead using accessories like scarves, jewelry and glasses to jazz up her look and add a little polish.
For Sanshe Bhatia, an elementary schoolteacher, it has meant trading her long kurtas or formal trousers and blouses for caftans and leggings. In order to encourage her class of 30 kids to get dressed in the morning rather than attending lessons in their pajamas, she takes care to look neat and makes sure her long hair is brushed properly.
into a tailspin,” interviews with a range of Parisians suggest a compromise of sorts had been reached.
When Xavier Romatet, the dean of the Institut Français de la Mode, France’s foremost fashion school, went back to work, he didn’t wear a suit, but he did wear a white shirt under a navy blue cashmere sweater and beige chinos, as he would at home. He paired his outfit with sneakers by Veja, a French eco-friendly brand.
Similarly, Anne Lhomme, the creative director of Saint Louis, the luxury tableware brand, dresses the same whether remotely or in person. A favorite look, she said, includes a camel-colored cashmere poncho “designed by a friend, Laurence Coudurier, for Poncho Gallery” and loosefitting plum silk pants. Also lipstick, earrings and four Swahili rings she found in Kenya.
light blue or white shirts, which I buy at Emile Lafaurie or online from Charles Tyrwhitt, with a round-collar sweater if it’s cold” — and, from the waist down, “Uniqlo pants in stretch fabric.”
And Sophie Fontanel, a writer and former fashion editor at Elle, said, “I am often barefoot at home, alone, wearing a very pretty dress.”
Fifth, as well as high-fashion labels, have focused on bright satin, silk and linen shirts with bow ties or stand-up collars, striped patterns or gathered sleeves. The trend for such showy tops has led to a boom in clothing subscription services.
One such platform, AirCloset, announced that 450,000 users had subscribed in October 2020, three times more than in the same period in 2019. Often users request tops only (one bottom item is usually included), and there is now a limit of three in any one order.
“Customers prefer brighter colors to basics such as navy or beige for online meetings, or they prefer asymmetric design tops,” said Mari Nakano, the AirCloset spokeswoman. About 40 percent of subscribers are working mothers for whom the subscription service saved time because they didn’t have to be bothered with washing. They just put the tops in a bag, return them and then wait for the next package to arrive with their new items.
Ushatava, an independent label of sleek, geometrically tailored sleek designs in mostly muted natural colors. It was founded in Yekaterinburg, a city in the Ural Mountains that in the last few years has turned into a Russian fashion hub. 12Storeez, another rising brand from Yekaterinburg, saw its turnover balloon by 35 percent over the last year, even as the market overall shrank by a quarter, said Ivan Khokhlov, one of the founders.
Nastya Gritskova, the head of a P.R. agency in Moscow, said the effect of the pandemic was that for the first time in the Russian capital people stopped “paying attention at who wears what.” Yet last fall, when the government eased coronavirus-related restrictions, things started going back to normal.
“There isn’t a pandemic that can make Russian women stop thinking about how to look beautiful,” she said.
Elisabetta Povoledo, Ruth Maclean, Mady Camara, Flávia Milhorance, Shalini Venugopal Bhagat, Daphné Anglès, Hisako Ueno and Ivan Nechepurenko contributed reporting.
Roughly 17.3 percent of all office space in Manhattan is available for lease, the highest proportion in at least three decades. Asking rents on the island have dropped to just over $74 a square foot, from nearly $82 at the beginning of 2020, according to a recent report by the real estate services company Newmark. Elsewhere, asking rents have largely stayed flat from a year ago, including in Boston and Houston, but have climbed slightly in Chicago.
The Japanese clothing brand Uniqlo, whose United States headquarters are in Manhattan’s SoHo neighborhood, recently relocated to another office building nearby, an open layout with tables designed for its work force of 130 people who will come into the office only a few days a week. Many of its office workers will keep working remotely after the pandemic, while some employees, like those in the marketing department, will hold meetings occasionally in SoHo.
“As a leader, it has been challenging because meeting people face-to-face is so important,” said Daisuke Tsukagoshi, the chief executive of Uniqlo USA. “However, since we are a Japanese company with global reach, the need for remote collaboration among many centers has always been part of our culture.”
Today in Business
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, even as the wider stock market and some companies in other industries like airlines and hotels that were hit hard by the pandemic have hit new 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.
Fitch Ratings estimated that office landlords’ profits would fall 15 percent if companies allowed workers to be at home just one and a half days a week on average. Three days at home could slash income by 30 percent.
Senior executives at property companies claim not to be worried. They argue that working from home will quickly fade once most of the country is vaccinated. Their reasons to think this? They say many corporate executives have told them that it is hard to effectively get workers to collaborate or train young professionals when they are not together.
When the Swedish fast-fashion giant H&M said in September that it was ending its relationship with a Chinese supplier accused of using forced labor, a few Chinese social media accounts dedicated to the textile industry took note. But by and large, the moment passed without fanfare.
Half a year later, Beijing’s online outrage machine sprang into action. This time, its wrath was unsparing.
The Communist Party’s youth wing denounced H&M on social media and posted an archival photo of slaves on a Mississippi cotton plantation. Official news outlets piled on with their own indignant memes and hashtags. Patriotic web users carried the message across far and varied corners of the Chinese internet.
Within hours, a tsunami of nationalist fury was crashing down upon H&M, Nike, Uniqlo and other international clothing brands, becoming the latest eruption over China’s policies in its western region of Xinjiang, a major cotton producer.
sanctions imposed on Chinese officials last week by the United States, the European Union, Britain and Canada in connection to Xinjiang. China has placed hundreds of thousands of the region’s Uyghurs and other ethnic minorities in indoctrination camps and used harsh methods to push them into jobs with factories and other employers.
“The hate-fest part is not sophisticated; it’s the same logic they’ve followed going back decades,” said Xiao Qiang, a research scientist at the School of Information at the University of California, Berkeley, and the founder of China Digital Times, a website that tracks Chinese internet controls. But “their ability to control it is getting better,” he said.
“They know how to light up those ultra-pro-government, nationalist users,” Mr. Xiao continued. “They’re getting very good at it. They know exactly what to do.”
rejected the notion that Beijing had led the boycott campaign against H&M and the other brands.
“These foreign companies refuse to use Xinjiang cotton purely on the basis of lies,” Mr. Zhao said at a news briefing. “Of course this will trigger the Chinese people’s dislike and anger. Does the government even need to incite and guide this?”
After the Communist Youth League ignited the outrage on Wednesday, other government-backed groups and state news outlets fanned the flames.
They posted memes proposing new meanings behind the letters H and M: mian hua (cotton), huang miu (ridiculous), mo hei (smears). The official Xinhua news agency posted an illustration depicting the Better Cotton Initiative, a group that had expressed concerns about forced labor in Xinjiang, as a blindfolded puppet controlled by two hands that were patterned like an American flag.
The buzz quickly drew notice at Beijing’s highest levels. On Thursday, a Foreign Ministry spokeswoman held up a photo of slaves in American cotton fields during a news briefing.
shared a clip showing a worker removing an H&M sign from a mall. A user in Beijing who posts about television stars highlighted entertainers who had ended their contracts with Adidas and other targeted brands.
“Today’s China is not one that just anyone can bully!” he wrote to his nearly seven million followers. “We do not ask for trouble, but we are not afraid of trouble either.”
A fashion influencer named Wei Ya held a live video event on Friday hawking products made with Xinjiang cotton. In her Weibo post announcing the event, she made sure to tag the Communist Youth League.
By Monday, news sites were circulating a rap video that combined the cotton issue with some popular recent lines of attack on Western powers: “How can a country where 500,000 have died of Covid-19 claim the high ground?”
One Weibo user posted a lushly animated video that he said he had worked through the night to make. It shows white-hooded men pointing guns at Black cotton pickers and ends with a lynching.
“These are your foolish acts; we would never,” a caption reads.
Less than two hours after the user shared the video, it was reposted by Global Times, a party-controlled newspaper known for its nationalist tone.
Many web users who speak up during such campaigns are motivated by genuine patriotism, even if China’s government does pay some people to post party-line comments. Others, such as the traffic-hungry blog accounts derided in China as “marketing accounts,” are probably more pragmatic. They just want the clicks.
tests conducted by China Digital Times, internet platforms have been diligently controlling search results and comments related to Xinjiang and H&M since last week.
An article in Global Times urged readers to “resolutely criticize those like H&M that make deliberate provocations, but at the same time, stay rational and beware of pretend patriots joining the crowd to stir up hatred.”
The Communist Youth League has been at the forefront of optimizing party messages for viral engagement. Its influence is growing as more voices in society look for ways to show loyalty to Beijing, said Fang Kecheng, an assistant professor in the School of Journalism and Communications at the Chinese University of Hong Kong.
apologized for the “bad impact” her post had made.
“Don’t just support Xinjiang cotton, support Xinjiang people too!” another Weibo user wrote. “Support Xinjiang people walking the streets and not having their phone and ID checked.”
The post later vanished. Its author declined to comment, citing concerns for his safety. Weibo did not respond to a request for comment.