Bezos, Jeffrey P
Subterms
More stories
- in Elections
Targeting ‘Woke Capital’
West Virginia’s banning of five big Wall Street banks for doing business with the state is yet another step toward a politicized world of red brands and blue brands. Florida’s DeSantis: Make profits great again.Phelan M. Ebenhack/Associated PressStates take action against ‘woke C.E.O.s’ Five big Wall Street firms woke up to a headache yesterday, and the ailment seems to be spreading fast. Riley Moore, the outspoken treasurer of West Virginia, announced that Goldman Sachs, JPMorgan, BlackRock, Morgan Stanley and Wells Fargo were banned from doing business with the state because they had stopped supporting the coal industry, reports The Times’s David Gelles.The banks have sharply reduced financing for new coal projects, while BlackRock has been reducing its actively managed holdings in coal companies since 2020. Coal, the most polluting fossil fuel, has become less profitable in recent years.Some of the firms do business with West Virginia in various ways. JPMorgan, for example, handles some banking services for West Virginia’s public university. But the dollar figures are relatively small, and the law does not affect the holdings of the state’s pension fund.The development is yet another step toward a politicized world of red brands and blue brands. In these hyperpartisan times, companies are increasingly being caught between conservatives and progressives, and some brands are being typecast as Republican or Democratic. The timing of the announcement was striking, coming just hours after Senator Joe Manchin of West Virginia, who had been the chief Democratic holdout on climate legislation, relented and agreed to sign on.Meanwhile in Florida, Gov. Ron DeSantis unloaded on the supposedly “woke” ideology of some financial services firms, criticizing E.S.G. investing and announcing plans for legislation that would “prohibit big banks, credit card companies and money transmitters from discriminating against customers for their religious, political or social beliefs.” At a news conference this week, he also said he wanted to prohibit the state’s pension fund managers from considering environmental factors when making investment decisions. Instead, he said, they need to be focusing only on “maximizing the return on investment.”Businesses now “marginalize” people because of political disagreements, DeSantis said. “That is not the way you can run an economy effectively.” He singled out PayPal, which has cut off accounts associated with far-right groups that participated in the Jan. 6 Capitol riot, and GoFundMe, which blocked donations to a group supporting truckers who occupied Ottawa this year.HERE’S WHAT’S HAPPENING Amazon’s shares soar as the company says consumer demand remains strong. The positive comments from C.E.O. Andrew Jassy and other top executives caused investors to shrug off the fact that the giant internet retailer reported its slowest quarterly sales growth in two decades, and has cut nearly 100,000 workers. Apple’s quarterly results were also better than expected, as Big Tech’s profits have been resilient even as the economy has slowed.The eurozone economy grew faster than expected, but so did inflation. Positive G.D.P. growth for the region, a day after the U.S. reported that economic growth slumped for the second quarter in a row, relieved some worries about growing stagflation. Still, inflation in the eurozone hit 8.9 percent in July compared with a year ago, a fresh record.The Biden administration plans to offer updated booster shots in September. With reformulated shots from Pfizer and Moderna on the horizon, the F.D.A. has decided that Americans under 50 should wait to receive second boosters.Read More About Oil and Gas PricesPrices Drop: U.S. gas prices have been on the decline, offering some relief to drivers. But weather, war and demand will influence how long it lasts.Stock Market: As financial markets around the world fell this spring amid worries about inflation and rising interest rates, energy was the only sector gaining ground. Summer Driving Season: The spike in gas prices is being driven in part by vacationers hitting the road. Here’s what our reporter saw on a recent trip.Gas Tax Holiday: President Biden called on Congress to temporarily suspend the federal gas tax, but experts remain skeptical the move would benefit consumers much, because tax is such a small percentage of the price you pay at the pump..A new book reignites a debate about how L.A. Times editors handled a 2017 exposé. Paul Pringle, a veteran reporter at the L.A. Times, writes in his book “Bad City” that top editors tried to slow-walk the paper’s initial groundbreaking article, which detailed how the dean of the University of Southern California’s medical school used drugs with young people.Trader Joe’s workers at a Massachusetts store form a union. It is the only one of the supermarket chain’s more than 500 stores with a formal union, but similar moves are afoot elsewhere, just as the union campaign has spread at Starbucks. Trader Joe’s will face at least one more union vote soon, at a Minneapolis store next month, and workers at a store in Colorado filed an election petition this week.Big oil’s big profitsOil companies are reporting surging profits, even as consumers and world leaders are dealing with the hardships caused by higher energy prices.Buoyed by high oil and gas prices, the energy sector is expected to have swelled earnings by more than 250 percent in the second quarter. Exxon Mobil and Chevron, the U.S.’s two largest oil companies, reported record profits this morning, with Exxon’s profit more than tripling from a year ago. Europe’s biggest oil companies, Shell and TotalEnergies, yesterday reported a combined $21 billion in profits.The fallout from Russia’s invasion of Ukraine has led to significant financial benefits for energy companies and their investors. The pain of rising energy prices and shortages, though, has been felt particularly strongly by consumers and businesses in Europe, which received roughly half of Russia’s oil exports before the invasion. In Asia and Africa, higher energy prices could push millions of people back into energy poverty, the International Energy Agency warned last month.It’s also led to claims of profiteering. President Biden said last month that oil companies were benefiting from their own underinvestment in refining capacity. In Britain, Boris Johnson, the outgoing prime minister, imposed a windfall tax on major oil and gas companies. But a top contender to replace him, Liz Truss, said that she opposed the tax because it would send “the wrong signal to the world,” and that Shell should be encouraged to invest in Britain.Oil companies have pointed the finger back at politicians. Ben van Beurden, Shell’s chief executive, said yesterday that energy prices were high in part because of government policies that discouraged investment in oil and natural gas in recent years.Gas prices in the U.S. have fallen over the last month, and there are some indications that more relief could be ahead. Citigroup said in a research note today that it expected growth in the supply of oil to outpace weaker demand. Still, geopolitical factors and the weather could change the trajectory of prices, particularly if the U.S. has an active hurricane season that disrupts refining capacity. “Just a few of these risks materializing could work up a continued perfect storm of high volatility,” Citigroup said.“There is a principle at stake. What can you buy if you have unlimited cash? Can you bend every rule? Can you take apart monuments?”— Stefan Lewis, a former member of Rotterdam’s City Council, explaining the outrage over the city’s decision, which has since been reversed, to temporarily dismantle a bridge to accommodate Jeff Bezos and his superyacht.The dark secrets of corporate subsidy deals Every year, state and local officials negotiate about $95 billion in economic development deals, competing with one another to recruit companies to their communities with lucrative subsidies in exchange for their business.But some corporations are becoming increasingly aggressive about forcing officials to sign nondisclosure agreements that could end up hurting the communities that the businesses were supposed to help, according to a new report by the American Economic Liberties Project, a progressive antitrust advocacy group. The N.D.A.s sometimes prohibit officials from disclosing basic information about a corporation, like its name and the type of business it’s building, Pat Garofalo, an author of the report, told DealBook.These N.D.A.s prevent community members, like workers and local businesses, from sharing their input on the deal until after it is completed. One recent example is the $4 billion battery factory that Panasonic will build in Kansas, which will get nearly $1 billion in subsidies. Before the deal was completed, Panasonic was also negotiating with Oklahoma, and the states were in a bidding war over the electronics giant’s business. But lawmakers could not talk about the corporation on the other side of the bargaining table in public — and sometimes didn’t even know its name. In April, Oklahoma officials complained that they had two hours to contemplate a complex incentive package worth $700 million, or about 8 percent of the state budget. “How am I supposed to go back to my constituents and say, ‘I gave away three-quarters of a billion dollars to a company that I don’t even know their name?’ Is that responsible?” State Representative Collin Walke said during an appropriations meeting.Some states have introduced bills to ban these N.D.A.s, which the report calls “an extremely common tactic” in development deals. This year, such legislation was introduced in New York, Michigan, Illinois, and Florida. New York’s State Senate voted unanimously to approve a ban. Garofalo thinks the New York lawmakers were galvanized by the Amazon HQ2 bid that fell apart in 2019. But he notes that communities don’t have to wait for politicians to fix the problem. Engaged citizens have used public meeting and records laws to solve subsidy mysteries, and sometimes a little transparency is all it takes, Garofalo said. “When the public does get a say,” he told DealBook, “the deals are better, or bad deals are knocked off right away.”THE SPEED READ Deals“Private equity giant Carlyle’s latest big play: Small Brooklyn buildings” (The Real Deal)Ernst & Young’s plan to split is reportedly being held up by debt issues. (WSJ)Newsmax renewed a deal to be carried by Verizon’s Fios, days before its rival One America News is to be dropped. Both are known for their loyalty to former President Trump. (NYT)PolicyThe private equity industry is objecting to a proposed U.S. tax increase on carried-interest income. (NYT)“Dry Fountains, Cold Pools, Less Beer? Germans Tip-Toe Up the Path to Energy Savings” (NYT)The big question is not whether the U.S. is in a recession. It’s whether the economy’s problems will worsen. (NYT’s The Morning)Best of the restArchitects have a reimagined vision for the former Deutsche Bank atrium at 60 Wall Street, with plans to make it look less like a Mediterranean spa and more like a Singapore airport. (NYT)Instagram is rolling back some product changes after celebrities like Kylie Jenner and Kim Kardashian criticized them. (NYT)TV showrunners are demanding that studios create protocols to protect employees in states where abortion has been outlawed. (Variety)Richard Rosenthal, the top defense lawyer for dangerous dogs, has even frustrated animal rights groups. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More
- in Elections
A Tabloid Ally of Trump and Weinstein Reboots Himself
Dylan Howard, known for the “catch and kill” deals during the #MeToo reckoning, teams up with an Italian publisher for a publication aimed at the Hamptons crowd.In late May, the luxury brand Ferragamo threw a launch party to celebrate the Grazia Gazette: The Hamptons — the latest free publication in one of the country’s wealthiest enclaves.Most guests did not know that they were also celebrating a comeback.Grazia’s American operation, Grazia USA, is run by Dylan Howard, the disgraced National Enquirer editor who played a key role in suppressing stories about Donald Trump’s affairs during his presidential campaign, helped Harvey Weinstein dig up dirt on his accusers and, in Jeff Bezos’s telling, threatened the Amazon owner with blackmail.At the party for Mr. Howard’s new venture, young stars and social media influencers mingled while sipping a custom rosé. Some sang along to Olivia Rodrigo’s “Driver’s License.”They knew the lyrics, but not much about the man behind the event.“I have never heard of him,” said Isaac Hindin-Miller, the DJ, in a phone call afterward.“I was more there as a guest of Ferragamo,” said Jenné Lombardo, a marketing consultant who went with her husband, Harvey Newton-Haydon, a model.“I don’t know Howard or anything about him,” Julia Moshy, one of the “Rich Kids of Instagram,” wrote in an email.A Dylan Howard primer: During his time as the top editor of The Enquirer, a job he held for more than five years, Mr. Howard used his position to help suppress coverage of Mr. Trump’s reported extramarital affairs, including buying one woman’s story and then burying it in a journalistic maneuver known as “catch and kill.” The company later admitted that the payment amounted to an illegal campaign contribution, and Mr. Howard emerged unscathed after cooperating with federal prosecutors.Mr. Howard also dispatched a reporter to help collect hostile information on the actress Rose McGowan, who had made veiled references to misconduct by Mr. Weinstein. (Ms. McGowan later said the producer had raped her in a hotel room in 1997 — Mr. Weinstein has denied all allegations of nonconsensual sex.)Soon after leaving American Media last year, Mr. Howard started a new company, Pantheon Media Group. Pantheon later struck a licensing agreement with the Mondadori Group, the biggest publisher in Italy and the backer of the Grazia fashion magazine franchise, to publish Grazia in the United States. The Grazia Gazette: The Hamptons is among the first projects.Madelyn Cline on the cover of the first issue of Grazia Gazette: The Hamptons.Grazia GazetteThe model Ambra Battilana, who had been invited to the party, was aware of Mr. Howard’s background. She said she was relieved she had not attended.Ms. Battilana has accused Mr. Weinstein of sexually assaulting her during a meeting in his TriBeCa office. The next day she recorded Mr. Weinstein apologizing to her. The Enquirer unsuccessfully tried to buy Ms. Battilana’s story at the time. (Mr. Weinstein was found guilty of sex crimes against two women last year and sentenced to 23 years in prison.)Given all that, Mr. Howard’s involvement in the Surf Lodge party did not sit well with Ms. Battilana, who spends most summer weekends in the Hamptons and goes to the Surf Lodge frequently. (Mr. Howard also has a home in Springs, a hamlet in the Hamptons, which he bought for $1.1 million at the end of 2017, according to public records.)“I think this is completely horrendous,” she said. “I will be asking who is connected, because I really want to get to the bottom of understanding who was the person who would allow such a person to get in.”In a statement, a spokeswoman for Ferragamo said: “Salvatore Ferragamo has a longstanding relationship with Grazia titles globally and recently expanded that to partner on the launch issue of the Gazette with a dinner co-hosted by editor in chief David Thielebeule and cover star Madelyn Cline, not Dylan Howard.” (Ms. Cline is an actress and one of the stars of Netflix’s “Outer Banks.”Grazia Gazette: The Hamptons is just one part of Mr. Howard’s reinvention plan. He is trying to raise money to “buy the entire Grazia brand worldwide,” according to a copy of his financing proposal reviewed by The New York Times, with whom Mr. Howard did not wish to discuss his new business ventures. He initially agreed to clarify his future plans over lunch, only to cancel through a publicist, Howard Bragman, several days later.“Mr. Howard would of course like to grow his business, including his successful collaboration with Grazia,” Mr. Bragman said in an email. In a separate email, Mr. Howard’s lawyer, Mitchell Schuster, called The Times’s characterization of Mr. Howard’s fund-raising efforts “not correct as stated and misleading.”Maer Roshan, the editor of Los Angeles Magazine and the former editor of Radar, which Mr. Howard took over in 2009 and transformed into something more akin to the gossip site TMZ, was among those in the media who were incredulous at Mr. Howard’s attempted comeback.How “does this dude come back with this glossy magazine and roster of A-list advertisers?” he wondered.Since leaving American Media when his contract expired on March 31, 2020, Mr. Howard has acquired the website for OK Magazine, as well as Radar Online. Both were formerly owned by American Media.Mr. Howard has also continued a sideline he started in 2018 as an author of true-crime books for Skyhorse, which is distributed by Simon & Schuster. Working in collaboration with other authors, but with his name receiving top billing, he has come out with more than half a dozen books, including, “Epstein: Dead Men Tell No Tales,” “Covid-19: The Greatest Cover-Up in History” and “Diana: Case Solved.”In an email, Tony Lyons, Skyhorse’s president and publisher, called Mr. Howard a “dogged investigator and a talented storyteller.”There is also podcasting. This month, PodcastOne, the producer of “The Adam Carolla Show,” “The Dan Abrams Podcast” and more than 200 other audio series, announced that it had reached a deal with Mr. Howard’s Empire Media to create six limited series and eight weekly programs.One company that won’t do business with Mr. Howard is the dating app Bumble, which removed his profile earlier this year after a woman complained about his work for Mr. Weinstein, according to two people with knowledge of the matter (Mr. Schuster, the lawyer, said Mr. Howard chose to remove his profile for “unrelated reasons” and said he did not “work for” Mr. Weinstein).Mr. Howard grew up in Geelong, Australia, a city southwest of Melbourne, and started his career at a local paper. From there he became a sports reporter for Channel 7 in Melbourne before coming to the United States in 2009.After a stint as a producer at Reuters in New York, he joined American Media, which owned a number of celebrity gossip sites and publications, including the supermarket tabloid Star and RadarOnline. Under Mr. Howard, RadarOnline turned into a celebrity scoop machine, posting audio recordings of Mel Gibson’s vitriolic tirades and other Hollywood dirt.In 2011, he tied for entertainment Journalist of the Year at the annual Los Angeles Press Club awards. “In the world of celebrity and entertainment news, even mainstream media couldn’t ignore exclusive stories broken under Dylan Howard’s tenure as senior executive editor of RadarOnline,” the judges wrote.Mr. Howard left American Media in 2012. The Associated Press reported that his departure came after an external investigation into his workplace behavior. (The company said he was cleared of any wrongdoing.) The next year he returned to American Media, whose chief executive was David Pecker, a friend of Donald J. Trump, and he soon became the company’s chief content officer. That job gave him oversight of The Enquirer as well as Us Weekly, Globe and OK!, among other publications.Mr. Howard in 2014, when he was the editor in chief of Radar Online.Ilya S. Savenok/Getty ImagesDuring the 2016 presidential campaign, headlines in The Enquirer lionized Mr. Trump and belittled his political rivals. In addition, as The Wall Street Journal was first to report, American Media made a $150,000 payment to the former Playboy model Karen McDougal in return for the rights to her story of an affair with Mr. Trump. The Enquirer never ran that story.Mr. Howard also worked with Michael D. Cohen, Mr. Trump’s former lawyer, on a deal that silenced another woman, Stormy Daniels, who also said she had sex with Mr. Trump, who has denied having sex with either woman.In an email, Mr. Bragman added that Mr. Howard had been “ORDERED BY MANAGEMENT” to help suppress coverage of Mr. Trump’s affairs. But in a follow-up email, Mr. Schuster, Mr. Howard’s lawyer, said that Mr. Bragman’s comment was not authorized by Mr. Howard.“Please disregard Mr. Bragman’s comment and confirm that it will not be included in your article,” he wrote. “Thank you.”American Media ultimately admitted that its payment to Ms. McDougal violated campaign finance law. Mr. Cohen was sentenced to three years in prison. Mr. Howard, along with Mr. Pecker, entered into a nonprosecution agreement with the government and cooperated with its investigation.The agreement remained in effect only if American Media did nothing to break the law for three years. In 2019, Mr. Bezos, the Amazon founder, accused the company of blackmail after it had published an 11-page exposé of his extramarital affair with the former TV personality Lauren Sanchez headlined “Bezos’ Divorce! The Cheating Photos That Ended His Marriage.”The story led to a public spat in which Mr. Bezos accused the tabloid’s leaders of “extortion and blackmail” in a lengthy post on Medium. The multibillionaire quoted from a letter sent to him by Mr. Howard. In the letter, as quoted by Mr. Bezos, Mr. Howard described the supposedly compromising photographs The Enquirer had in its possession, including a “below-the-belt selfie.”No one was charged in the matter. Mr. Schuster called Mr. Bezos’ post on Medium “self-serving and inaccurate,” and said that Mr. Howard’s reporting was “fair and accurate.”Now, a little more than a year since Mr. Howard made his exit from American Media, Grazia Gazette: The Hamptons appeared in stacks along Main Street in East Hampton. Distributed free, it has a lot of competition in a place where there is no shortage of gratis publications aimed at wealthy readers, a boomlet fueled by ad dollars from real estate agencies promoting multimillion-dollar listings.“Most of them are thrown in the garbage,” said the author Steven Gaines, a resident of East Hampton who has written extensively on the area’s history. “Some people pick them up and look at them, but there’s really nothing interesting.”The lucky ones have a rack under an awning, or a place on an indoor windowsill. The unlucky ones get tossed on doorsteps, rained on and thrown away.Lynn A. Scotti, a president and group publisher at Modern Luxury Media, which publishes Hamptons Magazine, is aware of the new entrant in the field. She said she had seen the Grazia Gazette “out wet,” adding: “We welcome healthy competition and I wish him the best.”The editor and publisher Dan Rattiner, who has run Dan’s Papers, a Hamptons local news publication, for more than 60 years, said of the free glossies: “They come and go. There are so many of them, it’s hard to tell one from another.”Mr. Roshan, the editor, expressed surprise that luxury advertisers would sign on with a publication run by Mr. Howard at a time when “people have been canceled and cast out for far less.”But Joseph Montag, the managing director of the Topping Rose House, a hotel and restaurant and a not infrequent filming location for “The Real Housewives of New York City,” suggested that people in the Hamptons were not likely to be bothered by Mr. Howard’s efforts to bury the accounts of the women who had accused Mr. Weinstein of sexual assault or told of their affairs with Mr. Trump.“People out here are used to those sorts of things,” Mr. Montag said, adding that Matt Lauer, the former NBC anchor who was fired by the network after accusations of sexual assault, was still out and about in the Hamptons.Mr. Gaines, the Hamptons chronicler, seemed to be of two minds.“If he wants to reinvent himself, he should go to Miami,” he said. “They forgive everything down there.”But then again, the Hamptons-specific media market is crowded.“If he took his bad-boy reputation out here and he used that, he exploited that, to make a different type of magazine,” Mr. Gaines continued, “I think people would read that.”Jim Rutenberg, Lauren Hirsch and Michael Rothfeld contributed reporting. Susan Beachy contributed research. More
