Senator Mitch McConnell of Kentucky, the majority leader, signaled on Tuesday that he would be willing to drop his demand for a sweeping liability shield as part of a pandemic stimulus package, provided that Democrats abandoned their insistence on including billions of dollars in aid for state, local and tribal governments.
Democrats immediately dismissed Mr. McConnell’s suggestion as a nonstarter, but it was the first offer of a major concession since congressional leaders agreed last week to renew their efforts to reach a deal on another round of coronavirus relief before they conclude this year’s session. Mr. McConnell has previously called the liability provision a “red line,” refusing to consider any stimulus package that lacked one.
“We know the new administration is going to be asking for another package,” Mr. McConnell said on Tuesday, offering a tacit acknowledgment of President-elect Joseph R. Biden Jr.’s victory. “What I recommend is we set aside liability, and set aside state and local, and pass those things that we agree on, knowing full well we’ll be back at this after the first of the year.”
Democrats panned the idea, after months of insisting that any stimulus agreement include funds to bolster state and local governments that have lost hundreds of billion of dollars during the pandemic and are facing devastating budget cuts. Republicans have branded the provision as a “blue-state bailout,” though state officials in both parties have lobbied for additional relief.
“He’s sabotaging good-faith bipartisan negotiations because his partisan ideological effort is not getting a good reception,” said Senator Chuck Schumer of New York, the minority leader, charging that “Senator McConnell is trying to pull the rug out from beneath” lawmakers working to hash out an agreement.
Speaker Nancy Pelosi of California, in her own statement, declared that “Leader McConnell’s efforts to undermine good-faith, bipartisan negotiations are appalling.”
Mr. Schumer said Democrats’ proposals for funding state and local governments had “broad bipartisan support,” unlike Mr. McConnell’s liability proposal. But some liability protections are included in the negotiations among a bipartisan group of senators working on a $908 billion stimulus compromise, which Democratic leaders said should be a starting point for negotiations.
Mr. McConnell’s liability proposal would provide five years of legal protection from coronavirus-related lawsuits for businesses, schools, hospitals and nonprofit organizations that make “reasonable efforts” to comply with government standards. But many Democrats have rejected what Senator Bernie Sanders, the Vermont independent, derided as “a get-out-of-jail free card to companies that put the lives of their workers and customers at risk.”
Leaders of both parties have agreed that some form of relief needs to be approved before Congress departs at the end of the year, and to work toward attaching it to a catch-all government spending package. Both chambers are expected to approve a one-week stopgap bill to avert a government shutdown on Friday and buy additional time for negotiators.
As moderates work to cement their compromise, Democrats are also mounting a renewed push to include an additional round of stimulus checks in any deal. Mr. McConnell has omitted it from his stimulus proposals because of conservative concerns that it is too costly.
Britain said Tuesday that it would impose retaliatory tariffs on American aluminum and steel imports when it separated from the European Union on Jan. 1, but that it had decided to forgo any tariffs against the United States as part of a long-running trade dispute over aircraft subsidies.
The decision comes as Britain prepares to take over control of its own trade policy as it departs the European Union. The moves are an attempt to calm trade tensions with the United States and pave the way for their future trading relations, the British government said.
“Ultimately, we want to de-escalate the conflict and come to a negotiated settlement so we can deepen our trading relationship with the U.S. and draw a line under all this,” Liz Truss, Britain’s international trade secretary, said in a statement. “We are protecting our steel industry against illegal and unfair tariffs — and will continue to do so — but are also showing the U.S. we are serious about ending a dispute that benefits neither country.”
The tariffs on American aluminum and steel would be imposed in retaliation for President Trump’s decision in 2018 to place levies on metals from Europe and elsewhere. The European Union has already imposed retaliatory tariffs on American goods like steel bars, whiskey and orange juice, but with Britain now separating from the bloc, it will impose its own tariffs.
The United States and Europe have also placed tariffs on each other in response to twin trade cases at the World Trade Organization over airplane subsidies. One trade case authorized the United States to tax European goods to recoup losses sustained from subsidies the European Union provided to Airbus, while another case allowed Europe to put tariffs on the United States in response to subsidies given to Boeing.
Both sides have said they are interested in negotiating a settlement.
In its announcement, the British government said it would begin a process to consult with British businesses and ensure its tariffs on American metals were tailored to the British economy.
It said that it was suspending the Boeing tariffs “in an effort to bring the U.S. toward a reasonable settlement and show the U.K. is serious about reaching a negotiated outcome,” but that it reserved the right to impose tariffs again if such a compromise could not be reached.
The Senate on Tuesday confirmed a Trump administration lawyer to the Federal Communications Commission, a move that critics say could leave the agency deadlocked early next year as it confronts the digital divide widened by the pandemic.
Lawmakers voted 49-46 to approve the nomination of Nathan Simington, a Commerce Department lawyer who previously worked for the private sector. His confirmation to a five-year term makes it likely that the agency will be evenly divided by party during the first days of President-elect Joseph R. Biden Jr.’s administration.
The agency’s chairman, Ajit Pai, a Republican, has said he will leave on Inauguration Day. That would leave the balance of the commission at two Republicans and two Democrats, making it difficult for Democrats to move forward with their agenda until Mr. Biden’s nominee is confirmed.
Senator Richard Blumenthal, a Connecticut Democrat, said that the confirmation would leave an agency “that is gridlocked and dysfunctional” as it votes on proposals and would be a boon to major media and telecommunication companies.
Mr. Simington’s nomination has also been contentious because this year he worked on a petition by the Commerce Department that asked the F.C.C. to limit legal protections for social media platforms. Critics of Mr. Simington’s nomination worry that it is part of Mr. Trump’s larger campaign against the law, known as Section 230, set off by frustration with how social media platforms handle his posts.
The Federal Trade Commission is suing to block Procter & Gamble’s proposed acquisition of Billie, a direct-to-consumer company that sells women’s razors and body care products.
The F.T.C., whose responsibilities include enforcing antitrust law, said on Tuesday that the deal would allow Procter & Gamble, the leading supplier of wet-shave razors, to eliminate competition, which would drive up prices for women’s shaving products.
“As its sales grew, Billie was likely to expand into brick-and-mortar stores, posing a serious threat to P.&G.,” Ian Conner, director of the commission’s Bureau of Competition, said in a statement.
Procter & Gamble announced the purchase in January.
This is the second antitrust lawsuit filed by the F.T.C. this year to block an acquisition in the direct-to-consumer razor market. In February, the agency blocked Edgewell Personal Care from acquiring Harry’s, a subscription service offering men’s shaving products.
Elon Musk threatened in May to move Tesla to Texas, from California, where he has feuded with local officials about coronavirus restrictions.
Now he claims to have pulled the trigger, at least for himself.
Mr. Musk said on Tuesday that he had moved to be near a new factory Tesla is building outside Austin. Speaking at a conference hosted by The Wall Street Journal, he said California has become less accommodating to successful entrepreneurs and start-ups, comparing the state to a sports team that takes winning for granted.
“They do tend to get a little complacent, a little entitled, and then they don’t win the championship anymore,” he said.
Mr. Musk clashed with public health officials in California over measures put in place to slow the spread of the coronavirus, which included shutting down car production at Tesla’s factory in Fremont, a city in the San Francisco Bay Area. He called restrictions to stop the spread of the virus “fascist” and predicted in March that there would be almost no new cases of the disease by the end of April.
He also announced in May that he would be “selling almost all physical possessions,” including his homes, and later listed for sale several homes he owned in California.
Speculation about a move by Mr. Musk or Tesla to Texas had increased in recent weeks. In addition to the Austin plant Tesla is building, Mr. Musk is also frequently drawn to Texas by his other company, SpaceX, which has substantial operations in the state, including a launch site on the Gulf of Mexico.
Patrick Gaspard, a former aide to President Barack Obama, U.S. ambassador to South Africa and executive director of the Democratic National Committee, has emerged as the leading candidate to be nominated as labor secretary under President-elect Joseph R. Biden Jr., according to people with knowledge of the discussions.
Mr. Gaspard announced last week that he would step down as the head of the Open Society Foundations, founded by the liberal megadonor George Soros, at the end of the year, fueling speculation in Washington that he was poised to join the incoming administration. He has a background in labor organizing, including a senior leadership position for the Service Employees International Union, which he held before joining the Obama administration.
His potential nomination would give Mr. Biden, who calls himself a “union guy,” a labor secretary with union roots. He would also add to the list of Black cabinet appointees, a key goal of Mr. Biden’s transition team as it seeks to fulfill Mr. Biden’s campaign promise of diversity in the top leadership of his administration.
Born in the Democratic Republic of Congo to Haitian parents, Mr. Gaspard immigrated to the United States in early childhood, grew up in New York and attended Columbia University before leaving to work on Jesse Jackson’s 1988 presidential campaign. He worked for years in New York City politics and on Howard Dean’s 2004 Democratic presidential bid, and he was an aide to former Mayor David Dinkins. After Mr. Dinkins died last month, Mr. Gaspard wrote on Twitter, “He taught me that you don’t need to be loud to be strong.”
Mr. Gaspard worked for years as an organizer and rose through the Service Employees International Union to become its national political director before joining Mr. Obama’s 2008 presidential campaign. In the Obama White House, Mr. Gaspard served as director of political affairs, before helming the Democratic National Committee and being confirmed as Mr. Obama’s ambassador to South Africa.
Two other possible nominees appear to remain in contention for Labor secretary. One is Julie Su, a labor lawyer and MacArthur “genius” grant recipient who is the secretary of California’s Labor and Workforce Development Agency. The other is Boston Mayor Marty Walsh, who has won support from some key labor unions.
Allies of Senator Bernie Sanders, independent of Vermont and Mr. Biden’s chief rival for the Democratic nomination this year, had pushed hard for Mr. Sanders to be selected as labor secretary. But Mr. Biden’s short list for the job does not appear to include Mr. Sanders.
Gol Airlines, a Brazilian carrier, said it planned to start flights aboard the Boeing 737 Max on Wednesday, making it the first airline to fly passengers on the plane since it was grounded worldwide almost two years ago.
The first flights will be on domestic routes to and from Gol’s hub in São Paulo, with the company expecting all seven of the Max planes in its fleet to be updated and cleared to fly by the end of the month. A Gol spokeswoman declined to provide further details.
“Our first priority is always the safety of our customers,” Celso Ferrer, vice president of operations and a commercial pilot at Gol, said in a statement. “Over the past 20 months, we have watched the most comprehensive safety review in the history of commercial aviation unfold.”
The Max was banned worldwide in March 2019 after a total of 346 people were killed in two crashes aboard the plane. In the United States, the Federal Aviation Administration last month became the first regulator to allow the plane to fly again, after required modifications are made. The agency was recently joined by regulators in Brazil, while the European aviation authority has suggested that it plans to lift its ban within weeks. Relatives of those killed in the crashes criticized the decision to allow the plane to fly again, arguing that it remains unsafe.
The lifting of the ban allows Boeing to restart sales and deliveries in earnest after its passenger airline business was pummeled by the grounding and the pandemic. The plane maker on Tuesday reported a net decline of 61 orders last month. Boeing’s backlog of orders, most of them for the Max, stood at 4,240, down more than a thousand from the start of the year after accounting for fulfilled orders.
Still, airlines are still interested in acquiring the plane. Last week, the company announced it had agreed to sell 75 Max jets to Ryanair, the low-cost European airline. Like RyanAir, Gol is among the biggest customers for the Max. The airline’s fleet is composed of 127 Boeing planes and it has an order for 95 Max jets scheduled for delivery over a decade starting in 2022.
A dirty secret of initial public offerings is that even the coolest ones may make only a handful of people rich — and it may not be regular people, employees or even fancy pre-I.P.O. investors who get a windfall.
DoorDash and Airbnb are expected to have spectacular first sales on public stock exchanges this week and start trading at far higher levels than anticipated even a few weeks ago.
But buying stock in relatively young and unproven companies — which usually describes technology companies selling their stock to the public for the first time — is often a coin-toss bet. Even the professional investors who buy stock in hot companies before they go public don’t always get rich, unless they throw their money around early and get lucky. Companies you might have heard of like Uber, Lyft, Snap and Slack were at best meh I.P.O. investments.
Look at Airbnb. Among the investors who got a special chance to buy Airbnb stock nearly four years ago, each $10,000 of stock they bought will be worth about $11,500 if Airbnb starts selling its shares to the public for $60 each. Nice!
But if your aunt had invested $10,000 nearly four years ago in a simple fund that mirrored the ups and downs of the S&P 500 stock index, she would now have $15,600. Even nicer.
The pandemic hurt business for Uber and Lyft, but their stocks were losers before then. Uber’s stock price has bounced back and is now up 30 percent since the spring, and still anyone who bought Uber shares in its 2019 I.P.O. — and even the professional investors who bought its stock in the four years before that — would have made far more money buying an index fund. Uber employees who were hired before the I.P.O. and were paid partly in stock also would have been better off being paid in an index fund.
People who bought stock in Snap, the company behind Snapchat, in its 2017 initial public offering had to wait more than three years to not lose money on their bet. Slack just sold itself at a share price not much higher than its first public stock sale last year.
These are cherry-picked examples. There are companies whose stock prices have soared since their I.P.O.s and made people rich — Zoom Video is a prominent example in technology. And the people who have already bet on the restaurant delivery app DoorDash stand to make a big profit when the company goes public this week.
Will Airbnb be a winning I.P.O.? It depends. It definitely will be for the venture capital firm Sequoia, which bet on Airbnb early. And it’s certainly faring better than people expected when travel froze early this year. But no one can confidently predict whether its share price will shoot to the moon like Zoom’s has since its 2019 I.P.O. or will plunge as Lyft’s did after it went public.
That’s the lesson. Cool companies don’t always make good investments. The people screaming on Robinhood about their splurge on a hot I.P.O. may not know what they’re talking about.
Goldman Sachs has reached a deal to buy out the minority partner in its Chinese securities joint venture, which could make it the first global bank to assume full ownership of its securities business in mainland China since the Communist Party took control of foreign-owned enterprises in the country in the 1950s. In a memo to employees on Tuesday, the Wall Street bank said it had reached a definitive agreement to buy a 49 percent stake in Goldman Sachs Gao Hua still held by its local partner, Beijing Gao Hua Securities. Goldman Sachs did not disclose a price for the transaction.
Rashida Jones, a senior vice president for news at MSNBC and NBC News, will become the first Black woman to take charge of a major television news network. Her promotion, announced by Cesar Conde, the chairman of NBCUniversal News Group, is another big shake-up in the network’s management ranks. She will succeed Phil Griffin, the MSNBC president whose left-leaning shows yielded big ratings in the Trump years and minted media brands like “The Rachel Maddow Show” and “Morning Joe,” will depart on Feb. 1 after a 12-year tenure, the network said on Monday.
The Japanese advertising giant Dentsu Group plans to cut roughly 6,000 jobs as it grapples with the effects of the coronavirus pandemic. In a securities filing in Tokyo on Monday, Dentsu laid out details of its restructuring strategy, which will cost 88 billion yen (about $850 million) to carry out over two years and includes trimming its 48,000-person international work force by 12.5 percent. The timeline will vary by location, the company said.
By: Ella Koeze·Source: Refinitiv
Stocks were unsteady on Tuesday, as the spread of coronavirus cases and restrictions on people’s movement and businesses outweighed optimism about the rollout of a vaccine.
The S&P 500 rose about a quarter of a percent. The Stoxx Europe 600 and Britain’s FTSE 100 also recouped small losses and were slightly higher.
In the United States, rising numbers of virus cases has led California to impose new stay-at-home orders in large swathes of the state. In New York, the number of people hospitalized with the coronavirus is rising and could lead to another ban on indoor dining.
In Europe, countries are struggling to emerge from a second wave of the pandemic. The infection rate in France is threatening plans to ease restrictions before the holidays, and in Greece, the lockdown was extended until early January.
But on a brighter note, Britain on Tuesday started a mass vaccination campaign, delivering the first shots of the Pfizer-BioNTech Covid-19 vaccine. “There is finally some clear light at the end of a very dark tunnel,” James Pomeroy, an economist at HSBC, wrote in a note to clients. “And that cheer should be seen in some of the economic data in the coming year too.”
Tesla said on Tuesday it would sell as much as $5 billion in shares, its third return to markets in 10 months, and use the money for more investments including factory construction. Tesla’s shares ended the day up more than a percent. This year, the electric carmaker’s shares have risen about 670 percent, and later this month, the company will join the S&P 500.