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    Adidas Has Sold Its Last Yeezy Sneaker

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    The sportswear maker was eager to put the scandal with the rapper Ye behind it, but its cautious earnings forecast showed the breakup’s effects still lingered.Adidas said Wednesday that it had sold its last pair of Yeezys, a wildly popular and profitable sneaker brand it developed with the rapper and designer Ye, as it tried to move past the publicity nightmare that followed after Ye’s antisemitic comments.The sportswear giant severed ties with Ye, formerly known as Kanye West, in 2022 after he posted antisemitic remarks on social media and made other offensive comments publicly. Adidas had said that ending its nearly decade-long collaboration with the American entertainer cost it nearly 250 million euros that year.The rapper apologized to the Jewish community in 2022 only to later retract his apology in a barrage of social media posts in February in which he declared he was a Nazi.The sale of Adidas’ remaining Yeezy inventory generated about €50 million in the fourth quarter of 2024, boosting the company’s overall revenue to €5.97 billion, up 24 percent from a year earlier, Adidas said Wednesday in an earnings report.But the sports brand was cautious in its outlook, cutting its revenue growth forecast for 2025 to 10 percent, from 12 percent last year. It was the first time, the company said, that the outlook did not include revenue from the Yeezy line.The breakup was hardest felt in North America, where the apparel was driven by the Grammy-winning rapper’s popularity. “Sales in North America declined 2 percent solely due to significantly lower Yeezy sales,” said Adidas, which is based in Herzogenaurach, Germany.After ending its ties with Ye, the apparel company struggled with slowing sales and revelations that it had ignored the rapper’s misconduct for years. The severed contract also left Adidas with mountains of sneakers and clothing, and potential losses of €1.2 billion in sales and about €500 million in profit last year.In 2023, under the stewardship of a new chief executive, Bjorn Gulden, Adidas decided not to write off the remaining Yeezy stock but sell it and donate part of the profit to organizations such as the Anti-Defamation League and Robert Kraft’s Foundation to Combat Antisemitism.On Wednesday, Mr. Gulden struck an optimistic tone, signaling the company’s eagerness to put the Yeezy scandal behind it with new celebrity collaborations and a focus on other popular sneaker lines, like the Samba, a decades’ old brand that has had a resurgence in popularity.“With all the challenges out there, let’s not forget that there are so many fun things to look forward to in 2025,” Mr. Gulden said.’ More

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      FTX’s Near-Collapse Batters the Crypto Industry

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      Prices of digital currencies have tumbled even after the exchange FTX announced a provisional lifeline by a top rival, Binance. A humbling downfall for Sam Bankman-Fried.Erika P. Rodriguez for The New York TimesA crypto giant’s fate is in doubtDevastation in the crypto market continued on Wednesday, after the giant crypto exchange Binance announced a bombshell deal to buy its embattled rival, FTX. (The deal excludes FTX’s American operations.) The entire market’s capitalization now stands at $900 billion, down from $3 trillion just one year ago, while major cryptocurrencies were down by double-digit percentages. The damage is largely contained within crypto; both the S&P 500 and the Nasdaq closed up yesterday.But investors fear that Binance won’t go through with the rescue plan, and that more pain awaits after their industry’s biggest Lehman-esque moment to date.What happened? Binance, an early investor in FTX turned rival, said over the weekend that it planned to sell its holdings in FTT, a token used for trading on FTX’s platform — a stunning move that cast doubt on the financial health of FTX and its trading arm, Alameda Research. The token’s value has plunged by roughly 80 percent in the past 36 hours to just under $5.Traders withdrew over $1.2 billion from FTX on Monday alone, according to the research firm Nansen. By Tuesday, FTX had stopped processing withdrawals; its chief executive, Sam Bankman-Fried, who was reportedly casting about for a financial lifeline from billionaires, finally turned to Binance for salvation.Binance has cemented its dominance over crypto. It was already the largest exchange worldwide for digital currencies and derivatives; FTX’s trading volumes in September were just a fraction of Binance’s. Its founder, Changpeng Zhao — widely known as CZ — showed off his power by effectively kneecapping FTX and then swooping in with a rescue. “This elevates Zhao as the most powerful player in crypto,” Ilan Solot of the derivatives trader Marex Solutions told The Financial Times.It’s a humbling downfall for Bankman-Fried, who in just three years rocketed from obscurity to become one of the best-known moguls in crypto, earning comparisons to Warren Buffett and J.P. Morgan. Months ago, Bankman-Fried sought to live up to the Morgan comparison, swooping in to bail out troubled crypto companies like Celsius and Voyager Digital (deals whose status is now unclear); he also became a frequent presence in Washington, calling for more regulation of the crypto industry, to the ire of CZ and other executives.At the beginning of the year, FTX was valued at $32 billion, backed by heavyweight investors like BlackRock, SoftBank and Tiger Global. (Investors said yesterday they were blindsided by the deal.) The 30-year-old Bankman-Fried — known in the crypto world as S.B.F. — was said to have a net worth of over $16 billion. But a document leaked to CoinDesk purportedly showed that FTX and Alameda, whose finances had long been murky, were highly illiquid and financially vulnerable.The crypto world fears other shoes will drop. Investors worry that CZ may yet pull out of his rescue deal: He noted on Tuesday that the transaction was nonbinding and subject to due diligence. Meanwhile, tokens associated with FTX, including Solana, have continued to plunge in value.Other crypto players sought to distance themselves from the FTX meltdown. Brian Armstrong of Coinbase, the biggest U.S.-focused exchange, said FTX’s troubles appeared to arise from “risky business practices” that his company doesn’t engage in. Still, Coinbase shares fell nearly 11 percent yesterday.And regulators say the news justifies more scrutiny of crypto companies. “This is a major market event for the digital asset sector,” said Joe Rotunda of the Texas State Securities Board Enforcement Division, which had already been investigating FTX.HERE’S WHAT’S HAPPENING Elon Musk sells billions more in Tesla stock to pay for his Twitter deal. He sold nearly $4 billion worth of shares in recent days, according to regulatory filings, bringing his total sales for the year to $36 billion. The electric carmaker’s shares were up slightly in premarket trading.The United Nations seeks to end “sham” corporate net-zero pledges. Companies that claim to be trying to cut carbon emissions but invest in fossil fuels should be shamed, António Guterres, the U.N. secretary general, said at COP27. Meanwhile, more rich countries pledged to pay poorer ones compensation for damage from climate change.Disney reports a jump in streaming losses. The media giant said its direct-to-consumer unit — including Disney+ — doubled its third-quarter losses from a year ago, to $1.5 billion. But Disney said the quarter was the “peak” for losses, and noted it had added 12 million new subscribers.TikTok lowers its worldwide revenue targets amid a spending slump. The video platform cut its sales goals by 20 percent after its advertising and e-commerce operations struggled, The Financial Times reports. TikTok also revamped its leadership in the United States.Adidas cuts its profit forecast after breaking from Kanye West. The warning from the sportswear giant came weeks after it ended its highly profitable collaboration with the rapper now known as Ye. Separately, Adidas named Bjorn Gulden, the former head of Puma, as its next C.E.O.The red wave that wasn’t Republicans haven’t quite had the night they expected. As of 7 a.m. Eastern, Republicans were 21 seats shy of retaking control of the House. But leadership of the Senate remains up in the air after the Democrats flipped a seat in Pennsylvania. Here are the big highlights so far:Pennsylvania: John Fetterman, the state’s Democratic lieutenant governor, beat Mehmet Oz in the closely watched Senate race. Political analysts now say Democrats need to win two of three hotly contested Senate races — in Georgia, Arizona and Nevada, all currently held by Democrats — to maintain power in the chamber.Georgia: The Senate contest looks like it’s headed for a runoff on Dec. 6, pitting the incumbent, Raphael Warnock, against his Republican challenger, Herschel Walker.Governor races: Voters backed high-profile incumbents, including Kathy Hochul, Democrat of New York; Greg Abbott, Republican of Texas; and Tony Evers, Democrat of Wisconsin.Ballot initiatives: Voters in Michigan approved making abortion access a right protected under the State Constitution. Those in Maryland and Missouri voted to legalize marijuana, though similar measures were rejected in Arkansas and North Dakota.A rough night for Donald Trump: Several candidates that he endorsed, including in Arizona, Georgia, Michigan and Pennsylvania, lost or were behind. And a potential rival for the 2024 Republican presidential nomination, Gov. Ron DeSantis of Florida, handily won re-election.Meta slices through its work forceFacebook’s owner Meta will lay off 11,000 employees, equivalent to 13 percent of its work force, the company announced on Wednesday morning, in the biggest restructuring in the social media giant’s history. A slump in digital advertising and ballooning losses from its pivot to the metaverse have pushed the company to make a series of wide-ranging cuts.In a note to employees, Mark Zuckerberg, Meta’s co-founder and C.E.O., admitted that the company had hired too aggressively during the pandemic as homebound consumers spent more time socializing and shopping online. Meta mistakenly assumed this trend would continue: “I got this wrong, and I take responsibility for that,” he wrote.The company has begun cutting costs across its operations, “scaling back budgets, reducing perks, and shrinking our real estate footprint,” Zuckerberg wrote. The stock was up 3.7 percent in premarket trading, outperforming the Nasdaq.The economic downturn is forcing companies across industries to shrink. Citigroup and Barclays are expected to lay off hundreds in their investment banking units, Bloomberg reports. And, according to Protocol, Salesforce could cut as many as 2,500 positions in the coming weeks as the activist investor Starboard Value seeks big changes in corporate strategy.Exclusive: Keurig Dr Pepper buys stake in Athletic Brewing Keurig Dr Pepper has invested $50 million in Athletic Brewing, the nonalcoholic beer company, as part of a $75 million fund-raise by Athletic, DealBook is first to report. It’s the beverage giant’s second foray into the nonalcoholic booze category — it announced a deal to acquire a nonalcoholic cocktail brand called Atypique this summer — and another sign of interest in this fast-growing category.Athletic Brewing was founded in 2017 by Bill Shufelt, a former trader at the hedge fund Point72, and John Walker, a former craft brewer. It now sells its products — including lager, light beer and sparkling water — at retailers like Trader Joe’s. With its new backer, Athletic is looking to expand in Australia, France and Spain.Sales of nonalcoholic beer are skyrocketing, growing almost 70 percent between 2016 and 2021 in the U.S., to about $670 million, according to Euromonitor. While that is still a tiny portion of the overall beer market, its popularity stands in stark contrast to overall sluggishness in beer sales, as the younger generation drinks less and cares more about its waistline. Beer giants like Heineken, Budweiser and Sam Adams have released nonalcoholic alternatives in the last five years.It’s not just for recovering alcoholics or nondrinkers. Shufelt said 80 percent of his customers drink alcohol, and three-fourths are between the ages of 21 and 44. About half are women, he added.THE SPEED READ DealsThe E.U.’s antitrust watchdog will deepen its scrutiny of Microsoft’s $75 billion takeover of Activision Blizzard. (WSJ)Goldman Sachs has reportedly weighed buying payment-technology companies to expand its credit-card business. (WSJ)The electric carmaker Lucid said it planned to raise up to $1.5 billion in fresh capital. (NYT)PolicyThe private equity giants Apollo, Carlyle and KKR disclosed inquiries by regulators over their dealmakers’ use of messaging apps like WhatsApp for business. (Bloomberg)Supreme Court justices are weighing a Pennsylvania law that requires companies to consent to being sued in its courts for conduct done anywhere. (NYT)Kenya published some details of a 2014 loan it took out from China, potentially straining relations with the country’s biggest source of infrastructure financing. (NYT)Best of the restVirginia Giuffre, a victim of Jeffrey Epstein, now says she may have misidentified the Harvard law professor Alan Dershowitz as an abuser. (NYT)Twitter may now offer two kinds of check marks to verify users. (The Verge)Levi’s named Michelle Gass, Kohl’s chief executive, as its next C.E.O. (NYT)Would you take a Zoom meeting in a movie theater? AMC hopes so. (Insider)UBS’s chief risk officer, Christian Bluhm, is quitting to become … a professional photographer. (FT)Thanks for reading! We’ll see you tomorrow.We’d like your feedback. Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Your Wednesday Briefing: Tensions Rise in the West Bank

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      Plus Myanmar’s junta kills dozens and Brittney Griner faces nine years in a Russian penal colony.Mourners attended the funeral of Palestinians killed in an overnight Israeli raid in Nablus.Jaafar Ashtiyeh/Agence France-Presse — Getty ImagesIsrael targets a Palestinian militiaIsraeli forces carried out a major raid against a new Palestinian militia in Nablus, a city in the occupied West Bank. Palestinian officials and militia members said the raid yesterday killed a leader of the group and four other men.Israel has blamed the militia, known as the Lions’ Den, for a rise in shootings that it says are aimed at its troops and Jewish settlements; one shooting killed a soldier this month. The militia, which emerged this year and does not answer to any of the established Palestinian factions, is steadily gaining support among young people.Many Palestinians have championed the group’s fighters as popular heroes. These young Palestinians are as frustrated with the Palestinian Authority, which exercises limited authority over parts of the West Bank, as they are with Israel.The predawn raid came ahead of Israel’s general election, its fifth since 2019, set for next Tuesday. It could add to right-wing momentum and strengthen Benjamin Netanyahu’s bid to retake power.Context: The Israeli army has kept Nablus under a tight siege for about two weeks. Palestinians have decried the move as a collective punishment.Background: This year has already been the deadliest in the West Bank since 2015 for Palestinians in the conflict with Israel, much of which has been focused on Nablus and Jenin. There has been a notable rise in violence against Palestinians by extremist Jewish settlers.One bomb killed Aurali Lahpai, a popular singer, and other performers mid-song.Associated PressAirstrike kills dozens in MyanmarAt least 80 people died in Myanmar after the military regime mounted its deadliest aerial attack since it seized power last year.The Sunday airstrike in northern Myanmar targeted the territory of ethnic Kachin rebels. People had gathered for an outdoor concert to celebrate the 62nd anniversary of the founding of the Kachin Independence Organization, one of the largest and most active ethnic groups in the country, which has been fighting the military for years.Since the coup, the organization has joined with pro-democracy forces and has helped train soldiers from the People’s Defense Force, an armed resistance group. The organization pledged to step up its military activities against the junta in retaliation.Military: The junta said that the site of the bombing was a Kachin army base, not a concert venue, and said widespread reports of civilian deaths, including the deaths of the performers, were “rumors based on fake news.”Context: The Kachin Independence Organization has long sought autonomy for Kachin State, which borders China and India and is well known for its lucrative jade trade.Brittney Griner has already been jailed for about eight months.Kirill Kudryavtsev/Agence France-Presse — Getty ImagesGriner’s prison term upheldA Russian court upheld the nine-year prison sentence for Brittney Griner, the U.S. basketball star. A prisoner swap with the U.S. may be her best hope to avoid a penal colony.There are two higher courts above the appellate division, culminating in the Supreme Court, but Griner’s lawyers said they had not decided whether to take the case any further. Higher courts in Russia are not known for overturning verdicts, especially in a case involving foreign policy and the interests of the Kremlin.The U.S. has proposed exchanging Griner and Paul Whelan, a former U.S. Marine held since December 2018, for Viktor Bout, a Russian arms dealer who is serving a 25-year federal prison sentence, according to a person familiar with the talks. But negotiations have dragged on for months.Background: Griner was arrested days before Russia invaded Ukraine after she arrived in Russia with a small amount of hashish oil. Threats: Russia and Ukraine accused each other of planning attacks to spread radioactive material, raising fears in the West that Moscow’s claims could be a pretext for an escalation. President Biden sharply warned Moscow against using a tactical nuclear weapon.THE LATEST NEWSAustralia’s BudgetJim Chalmers, Australia’s treasurer, delivered the 2022-23 federal budget yesterday.Lukas Coch/EPA, via ShutterstockAustralia’s government released its first budget yesterday. It is the first from the Labor Party in almost a decade, The Guardian reports.Australia’s plan emphasizes spending on families, as well as on older adults, defense and other countries in the Pacific, The Associated Press reports.Reuters reports that the “low-drama” budget stressed stability, pragmatism and tight controls.Australia is anticipating an economic slowdown amid rising global inflation, The Sydney Morning Herald reports.British PoliticsKing Charles III welcomed Rishi Sunak to Buckingham Palace yesterday.Pool photo by Aaron ChownRishi Sunak is now Britain’s prime minister. He opted for stability and continuity in his cabinet. Jeremy Hunt, who quickly reversed Liz Truss’s economic proposals, will stay on as the top finance minister. Sunak supported Brexit and pledged to do “whatever it takes” to send asylum seekers to Rwanda. But he has been tight-lipped about his policy agenda.China said it supported advancing ties with Britain under Sunak, despite simmering tensions.Sunak’s ascent has inspired some members of the Indian diaspora. But his immense personal wealth makes him less relatable.Other Big Stories“I want to cry, I want to scream,” said a 31-year-old Venezuelan migrant, who said he had traversed 10 countries to get to the U.S. Alejandro Cegarra for The New York TimesTens of thousands of Venezuelans are stranded south of the U.S. border after an abrupt shift in the Biden administration’s immigration policy.WhatsApp went down in India, South Korea and other countries yesterday. The company did not provide a cause.Here are photos from the partial solar eclipse yesterday.A Morning ReadBefore the pandemic, Kathryn Wiltz’s employer repeatedly denied her requests to work from home because of her disability. Now, her new job allows her to do so permanently.Sarah Rice for The New York TimesThe pandemic prompted more employers to consider remote work arrangements. As a result, the share of adults with disabilities who are working has soared.A man with autism spectrum disorder, which has made it difficult for him to find steady work, recently landed a full-time job — with a 30 percent raise. “If I have my bad days, I just pick up the laptop and work from home,” he said.POP CULTUREAdidas drops YeAdidas said it was immediately ending its partnership with Kanye West, now known as Ye, who made a series of antisemitic remarks and embraced a slogan associated with white supremacists this month.In so doing, the German sneaker giant ended what may have been the most significant corporate fashion partnership of Ye’s career. It’s not the first to go: After days of notable silence, Balenciaga, the fashion house that had Ye walk down its runway, cut him loose. CAA, the talent agency that represents Ye, also dropped him as a client.Like many of Ye’s other fashion connections, Adidas seemed to be dragging its feet, perhaps hoping for a public apology. Now, Ye’s economic future and his status as a pop culture icon may be in peril.PLAY, WATCH, EATWhat to CookKate Sears for The New York Times. Food Stylist: Barrett Washburne.Roast butternut squash in miso and butter for a savory vegetarian pasta dinner.Letter of RecommendationThere’s joy in jet lag.FashionFind your personal style.Now Time to PlayPlay the Mini Crossword, and a clue: Polluted air (four letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Park Chung-hee, South Korea’s president who seized power in a coup, was assassinated 43 years ago today. His friend Kim Jae-kyu, then the head of the Korean Central Intelligence Agency, killed him and was sentenced to death.The latest episode of “The Daily” is on Europe’s energy crisis.You can reach Amelia and the team at briefing@nytimes.com. More