• The Boeing-Airbus agreement followed two days of intense negotiations in Brussels between Katherine Tai, the U.S. trade representative, and Valdis Dombrovskis, the E.U. trade commissioner. European member states approved the deal overnight. Link
    DealBook Wed 16 Jun 2021 13:31
    President Biden participated in a round-table summit on Tuesday in Brussels, where he announced the end of a bitter, 17-year dispute with the European Union over aircraft subsidies for Boeing and Airbus.
  • .@mcorkery5 writes that last month’s data shows that consumers have most likely spent all they need to furnish their homes or upgrade their phones. Now they are shifting their purchases to restaurants, lodging and travel, as vaccination rates rise. Link
    DealBook Wed 16 Jun 2021 13:31

    Retail sales fell more than expected last month, the Commerce Department reported on Tuesday, a sign of the uneven recovery of the American consumer and a shift in spending patterns as the country reopens after the coronavirus pandemic.

    The 1.3 percent decline in May followed months of ups and downs in retail spending.

    After falling to record lows about a year ago, sales bounced back sharply this spring, only to swing from month to month, driven by the ebb and flow of government stimulus and the persistence of the virus. The data from April was revised on Tuesday to show an increase of 0.9 percent.

  • Amid the pandemic, Amazon’s system for managing people burned through workers, resulted in inadvertent firings and stalled benefits, and impeded communication – casting a shadow over a business success story for the ages. Link
    DealBook Wed 16 Jun 2021 12:41

    When the coronavirus shut down New York last spring, many residents came to rely on a colossal building they had never heard of: JFK8, Amazon’s only fulfillment center in America’s largest city.

    What happened inside shows how Jeff Bezos created the workplace of the future and pulled off the impossible during the pandemic — but also reveals what’s standing in the way of his promise to do better by his employees.

  • In today's DealBook newsletter: why today's Fed meeting is so important; DraftKings faces a short-seller; @stephengandel on why high worker turnover may be good -- for Amazon; @el72champs on efforts to make U.S. banking more just; and more Link
    DealBook Wed 16 Jun 2021 11:26

    “They are not running for the exits, but they are at least planning the escape route,” said Priya Misra of T.D. Securities. Rock-bottom interest rates and $120 billion in monthly bond purchases have propped up the economy and stock markets, and several Fed officials have said that they would like to soon discuss plans about how to start removing this support, even if that is months — or years — in the future.

  • .@nkulish and @dgelles report that though MacKenzie Scott has donated more than $8 billion over the past 11 months, primarily through direct gifts to nonprofits, today she is richer than ever, worth some $60 billion, according to Forbes. Link
    DealBook Wed 16 Jun 2021 11:16

    Ms. Scott made that pledge in 2019, after her divorce from Jeff Bezos. At the time, her portion of the settlement, some 4 percent of Amazon shares, was valued at around $36 billion.

    Thanks to the soaring value of that stock, Ms. Scott is accumulating wealth faster than she can give it away. Though she has donated more than $8 billion over the past 11 months, primarily through direct gifts to nonprofits, today she is richer than ever, worth some $60 billion, according to Forbes.

    In 2020, a year of incredible need, Ms. Scott gave away nearly $6 billion to 500 organizations. Now, for the third time in under a year, Ms. Scott has announced a new round of grants, worth a combined $2.74 billion, demonstrating that her dedication to rapidly disbursing her fortune has not abated.

  • In Texas, a light regulatory touch has led to “a system that’s been cutting corners and trying to just have enough power to get by — which is fine until a couple of things go wrong, and we’re left at the edge of blackouts again,” Link
    DealBook Wed 16 Jun 2021 10:01

    Things had not looked so troubled earlier in the year. The North American Electric Reliability Corporation, which helps ensure reliability of the power grids, expected above average reserves in Texas this summer, at 15.3 percent for the year, up from 12.9 percent in 2020.

    But the agency warned in a report last month that “extreme weather can affect both generation and demand and cause energy shortages that lead to energy emergencies” for Ercot.

    The problem is urgent, but not new. “Every summer, everyone holds their breath to see if there’s going to be enough generation in Texas to keep the lights on,” said Bernard L. McNamee, a former member of the Federal Energy Regulatory Commission and a partner in the law firm McGuire Woods.

    At times, some power producers simply choose not to offer electricity into the market because it might not prove economically beneficial, leaving customers short on energy and paying high prices for the power they do get.

    Arnie...

  • Not even the promise of a new cookie — “Toast-Yay!,” anyone? — could improve this year’s lackluster sales. Link
    DealBook Wed 16 Jun 2021 08:41

    The Girl Scouts are struggling to sell a heaping pile of extra cookies: 15 million boxes of them, to be exact.

    Troops with armfuls of cookies used to be a fixture outside grocery stores and on people’s doorsteps. But this year, those cookies are stuck in warehouses after Girl Scouts of the U.S.A. was confronted with two major obstacles during the pandemic: membership has declined, and the scouts had to abandon their usual in-person selling methods.

    Those problems left the national organization with millions of extra Thin Mints, Samoas and other signature treats. Around 12 million of the 15 million surplus cookies never left the bakery warehouses in Kentucky and Indiana, the Girl Scouts said in a statement on Tuesday.

    “Given that a majority of cookies are sold in person by girls at booths or other face-to-face methods, a decrease in sales was to be expected,” Kelly Parisi, a Girl Scouts spokeswoman, said in the statement.

  • Documenting the untold story of how the pandemic exposed the power and peril of Amazon’s employment system, reporters at The Times interviewed nearly 200 current and former employees. Here’s what they found: Link
    DealBook Wed 16 Jun 2021 07:21

    When the coronavirus shut down New York last spring, many residents came to rely on a colossal building they had never heard of: JFK8, Amazon’s only fulfillment center in America’s largest city.

    What happened inside shows how Jeff Bezos created the workplace of the future and pulled off the impossible during the pandemic — but also reveals what’s standing in the way of his promise to do better by his employees.

  • Aiming to create a sense of community that will entice out-of-town businesses and workers to settle in Rocky Mount, N.C., the current owner of the town’s cotton mill has redeveloped the site – giving it a dynamic atmosphere with stores and residences. Link
    DealBook Wed 16 Jun 2021 06:31

    Less than a decade ago, the economic malaise in Rocky Mount, N.C., was tangible. Rocky Mount Mills, a big cotton mill that had given the town its identity, had shut down in 1996, costing the area hundreds of jobs. Downtown was deserted. Nobody was hiring.

  • “This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft — after 17 years of dispute,” said the European Commission president. Link
    DealBook Wed 16 Jun 2021 05:36
    President Biden participated in a round-table summit on Tuesday in Brussels, where he announced the end of a bitter, 17-year dispute with the European Union over aircraft subsidies for Boeing and Airbus.
  • Signaling a shift in spending patterns as the country reopens, retail sales fell 1.3 percent in May – following months of ups and downs. Link
    DealBook Wed 16 Jun 2021 04:16

    Retail sales fell more than expected last month, the Commerce Department reported on Tuesday, a sign of the uneven recovery of the American consumer and a shift in spending patterns as the country reopens after the coronavirus pandemic.

    The 1.3 percent decline in May followed months of ups and downs in retail spending.

    After falling to record lows about a year ago, sales bounced back sharply this spring, only to swing from month to month, driven by the ebb and flow of government stimulus and the persistence of the virus. The data from April was revised on Tuesday to show an increase of 0.9 percent.

  • At the time, MacKenzie Scott’s portion of the settlement from her divorce from Jeff Bezos, some 4 percent of Amazon shares, was valued at $36 billion. Thanks to the soaring value of that stock, she is accumulating wealth faster than she can give it away. Link
    DealBook Wed 16 Jun 2021 03:01

    Ms. Scott made that pledge in 2019, after her divorce from Jeff Bezos. At the time, her portion of the settlement, some 4 percent of Amazon shares, was valued at around $36 billion.

    Thanks to the soaring value of that stock, Ms. Scott is accumulating wealth faster than she can give it away. Though she has donated more than $8 billion over the past 11 months, primarily through direct gifts to nonprofits, today she is richer than ever, worth some $60 billion, according to Forbes.

    In 2020, a year of incredible need, Ms. Scott gave away nearly $6 billion to 500 organizations. Now, for the third time in under a year, Ms. Scott has announced a new round of grants, worth a combined $2.74 billion, demonstrating that her dedication to rapidly disbursing her fortune has not abated.

  • Even before the pandemic, Amazon lost about 3 percent of its hourly associates each week, meaning the turnover among its work force was roughly 150 percent a year. Company executives fear that now there simply will not be enough workers. Link
    DealBook Wed 16 Jun 2021 01:26

    When the coronavirus shut down New York last spring, many residents came to rely on a colossal building they had never heard of: JFK8, Amazon’s only fulfillment center in America’s largest city.

    What happened inside shows how Jeff Bezos created the workplace of the future and pulled off the impossible during the pandemic — but also reveals what’s standing in the way of his promise to do better by his employees.

  • The Senate confirmed Lina Khan, a prominent critic of the nation’s largest tech companies, to the Federal Trade Commission, an agency that investigates antitrust violations, deceptive trade practices and data privacy lapses in Silicon Valley. Link
    DealBook Tue 15 Jun 2021 22:01

    President Biden has named Lina Khan, a prominent critic of Big Tech, as the chairwoman of the Federal Trade Commission, according to two people with knowledge of the decision, a move that signals that the agency is likely to crack down further on the industry’s giants.

    A public announcement of the decision is expected Tuesday, one of the people said.

    Earlier in the day, the Senate voted 69 to 28 to confirm Ms. Khan, 32, to a seat at the agency. The commission investigates antitrust violations, deceptive trade practices and data privacy lapses in Silicon Valley.

    Ms. Khan did not immediately respond to a request for comment.

    In her new role, Ms. Khan will lead efforts to regulate the kind of behavior highlighted for years by critics of Amazon, Facebook, Google and Apple. She told a Senate committee in April that she was worried about the way tech companies could use their power to dominate new markets. She first attracted notice as a critic of Amazon. The...

  • Ten banks that have been penalized for violating antitrust laws were excluded as the European Union began selling bonds to finance the bloc’s recovery from the pandemic, part of a new form of collective financing for Europe. Link
    DealBook Tue 15 Jun 2021 22:01

    A day after ousting two top executives, the electric truck start-up Lordstown Motors said on Tuesday that it was on track to start production in September even if it does not raise additional funding, contradicting what it told securities regulators just a week ago.

    In a filing to the Securities and Exchange Commission last week, Lordstown said it needed to raise more money and might not survive. Then, on Monday its founder and chief executive, Steve Burns, and the company’s chief financial officer resigned.

    But in a news conference hosted by the Detroit-based Automotive Press Association, the company’s new executive team presented a far more optimistic outlook without providing many details.

    Lordstown’s president, Rich Schmidt, said that the company would start making trucks at its plant in Lordstown, Ohio, in late September and that it had enough money to last until May 2022. He said the company would be able to make about 15,000 trucks over the next 24...

  • Southwest Airlines flights within the U.S. were temporarily suspended on Tuesday afternoon, the second major disruption to the company’s operations in less than 24 hours. “Technology issues” were described to be the cause. Link
    DealBook Tue 15 Jun 2021 22:01

    Southwest Airlines flights within the United States were temporarily suspended on Tuesday afternoon, the second major disruption to the company’s operations in less than 24 hours.

    The F.A.A. said in a statement that the airline had requested the nationwide grounding as it “resolved a reservation computer issue.” In a separate statement, Southwest said it had canceled nearly 500 flights and, it blamed the disruption on “intermittent performance issues with our network connectivity.”

    “Teams are working quickly to minimize flight disruptions and customer impact,” the airline said. “We appreciate our customers’ patience as we work to get them to their destinations.”

    The airline experienced a similar outage late Monday, which it had blamed on a third-party provider of weather data. Both disruptions prompted widespread complaints on social media from frustrated travelers. A spokesman, Dan Landson, said the company was “investigating the root cause of each event.”...

  • A day after ousting two top executives, the electric truck start-up Lordstown Motors said that it was on track to start production in September even if it does not raise additional funding, contradicting what it told securities regulators just a week ago. Link
    DealBook Tue 15 Jun 2021 22:01

    A day after ousting two top executives, the electric truck start-up Lordstown Motors said on Tuesday that it was on track to start production in September even if it does not raise additional funding, contradicting what it told securities regulators just a week ago.

    In a filing to the Securities and Exchange Commission last week, Lordstown said it needed to raise more money and might not survive. Then, on Monday its founder and chief executive, Steve Burns, and the company’s chief financial officer resigned.

    But in a news conference hosted by the Detroit-based Automotive Press Association, the company’s new executive team presented a far more optimistic outlook without providing many details.

    Lordstown’s president, Rich Schmidt, said that the company would start making trucks at its plant in Lordstown, Ohio, in late September and that it had enough money to last until May 2022. He said the company would be able to make about 15,000 trucks over the next 24...

  • “It’s about seeing connections and building confidence,” said the chief operating officer of the Markle Foundation, which supports programs to broaden job opportunities. “And you need people to do this, to help close that gap.” Link
    DealBook Tue 15 Jun 2021 21:56
    Rachelle Katchenago now has a full-time job at a start-up in Madison, Wis., after losing her contract job in the pandemic. “It’s a blessing for stability,” she said.Credit...Kevin Miyazaki for The New York Times
  • “A lot of these communities have the best chance they’ve had in a while to recruit individuals to take advantage of much more affordable housing prices and the other amenities that are there." Link
    DealBook Tue 15 Jun 2021 21:56

    Less than a decade ago, the economic malaise in Rocky Mount, N.C., was tangible. Rocky Mount Mills, a big cotton mill that had given the town its identity, had shut down in 1996, costing the area hundreds of jobs. Downtown was deserted. Nobody was hiring.

  • Stocks drifted lower on Tuesday, with the S&P 500 retreating from a record high as government reports showed that prices for businesses jumped and retail sales dropped in May. Link
    DealBook Tue 15 Jun 2021 21:51

    A day after ousting two top executives, the electric truck start-up Lordstown Motors said on Tuesday that it was on track to start production in September even if it does not raise additional funding, contradicting what it told securities regulators just a week ago.

    In a filing to the Securities and Exchange Commission last week, Lordstown said it needed to raise more money and might not survive. Then, on Monday its founder and chief executive, Steve Burns, and the company’s chief financial officer resigned.

    But in a news conference hosted by the Detroit-based Automotive Press Association, the company’s new executive team presented a far more optimistic outlook without providing many details.

    Lordstown’s president, Rich Schmidt, said that the company would start making trucks at its plant in Lordstown, Ohio, in late September and that it had enough money to last until May 2022. He said the company would be able to make about 15,000 trucks over the next 24...

  • Ikea France was fined 1 million euros ($1.2 million) by a French court on Tuesday after it was found guilty of carrying out illicit surveillance on union organizers, employees, job applicants and even disgruntled customers for nearly a decade. Link
    DealBook Tue 15 Jun 2021 21:51

    A day after ousting two top executives, the electric truck start-up Lordstown Motors said on Tuesday that it was on track to start production in September even if it does not raise additional funding, contradicting what it told securities regulators just a week ago.

    In a filing to the Securities and Exchange Commission last week, Lordstown said it needed to raise more money and might not survive. Then, on Monday its founder and chief executive, Steve Burns, and the company’s chief financial officer resigned.

    But in a news conference hosted by the Detroit-based Automotive Press Association, the company’s new executive team presented a far more optimistic outlook without providing many details.

    Lordstown’s president, Rich Schmidt, said that the company would start making trucks at its plant in Lordstown, Ohio, in late September and that it had enough money to last until May 2022. He said the company would be able to make about 15,000 trucks over the next 24...

  • Charitable giving in the United States rose in 2020, fueled in part by a rising stock market and government stimulus checks, with organizations focused on civil rights and the environment benefiting the most, according to a report released Tuesday. Link
    DealBook Tue 15 Jun 2021 21:51

    Charitable giving in the United States rose in 2020, fueled in part by a rising stock market and government stimulus checks, with organizations focused on civil rights and the environment seeing big increases in donations, according to a report released Tuesday.

    Total charitable donations rose 5 percent to $471.4 billion, a record level, according to the annual Giving USA Foundation report. It helped, the report said, that the S&P 500 rose more than 16 percent by the end of the year and that personal income rose as the government rolled out stimulus spending, including checks sent directly to Americans. The backdrop of a national conversation over race, in the aftermath of the murder of George Floyd by a Minneapolis police officer, also fueled fund-raising.“In some ways, 2020 is a story of uneven impact and uneven recovery,” said Amir Pasic, dean of Indiana University’s Lilly Family School of Philanthropy, which released the report in partnership with the Giving USA...

  • Retail sales fell slightly last month, the Commerce Department reported on Tuesday, as consumers spent less on goods and more on activities like travel, an industry that had been hobbled by the pandemic. Link
    DealBook Tue 15 Jun 2021 21:51

    Retail sales fell more than expected last month, the Commerce Department reported on Tuesday, a sign of the uneven recovery of the American consumer and a shift in spending patterns as the country reopens after the coronavirus pandemic.

    The 1.3 percent decline in May followed months of ups and downs in retail spending.

    After falling to record lows about a year ago, sales bounced back sharply this spring, only to swing from month to month, driven by the ebb and flow of government stimulus and the persistence of the virus. The data from April was revised on Tuesday to show an increase of 0.9 percent.

  • At a time when corporate leaders are increasingly expected to act as moral arbiters, the professional services giant PwC has spotted a business opportunity: teaching executives how to be more trustworthy. Link
    DealBook Tue 15 Jun 2021 21:51

    At a time when corporate leaders are increasingly expected to act as moral arbiters, the professional services giant PwC has spotted a business opportunity: teaching executives how to be more trustworthy.

    On Tuesday, it unveiled a plan to focus the firm, which offers an array of accounting and consulting services, around the concept of trust. (It also announced a goal of investing $12 billion in recruiting, training and technology, with plans to add 100,000 new workers.)

    It’s an offering aimed directly at corporate America’s need to account for more than just profits and shareholders.

    Executives are now regularly under pressure to speak out on issues such as racial justice and the environment. And businesses are in the unusual position of being the most trusted institutions in society, more than governments, nonprofit groups and the media, according to the latest edition of a long-running survey by the public relations firm Edelman.

  • Twenty-five states will halt some or all emergency unemployment benefits, with many Republican governors blaming the programs for a shortage of workers in many industries as businesses reopen. Link
    DealBook Tue 15 Jun 2021 21:51

    Federal Pandemic Unemployment Compensation, which provides eligible individuals with $300 a week on top of their regular benefits.

    Pandemic Emergency Unemployment Compensation, which extends benefits for workers who have exhausted their state allotment.

    Pandemic Unemployment Assistance, which covers freelancers, part-time hires, seasonal workers and others who do not normally qualify for state unemployment benefits.

    Mixed Earner Unemployment Compensation, which offers additional assistance for people who make their income by combining a salaried job with freelance gigs.

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