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      Targeting ‘Woke Capital’

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      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

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      Big Tech and the Fed

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      Some tech companies’ earnings are flagging, in what could be a positive sign for the Federal Reserve.Still big.Noah Berger/Agence France-Presse — Getty ImagesWhat tech earnings say about the economy The long-booming bottom lines of major tech companies are all of a sudden smaller than expected. That might be a good thing. Big Tech sailed through the pandemic with its profits mostly intact. The fact that some firms’ results are now flagging could be a positive sign for the Federal Reserve, which is trying to engineer a slowdown as it fights the nation’s worst bout of inflation in four decades.The big question for investors, and perhaps the Fed, is whether the profits of Apple, Alphabet, Amazon and the other tech giants, along with corporate America in general, have fallen enough.Microsoft and Alphabet, Google’s parent company, kicked off what appears to be a disappointing round of quarterly reports for the U.S.’s largest tech companies yesterday. Meta will release its results this afternoon, with Apple and Amazon rounding out Big Tech’s earnings announcements tomorrow.Microsoft’s profits, while below expectations, were still up. Sales of its signature software products, like Office, rose 13 percent. Its cloud services were up 40 percent. And LinkedIn, the professional social network Microsoft bought in 2016, grew 26 percent from a year ago, continuing to benefit from the tightest job market in decades.Alphabet’s sales rose 13 percent. In another good sign for the economy, the jump was driven by better-than-expected sales in its core Google search engine business, while results were mixed elsewhere. A jump in expenses and an exit from its Russian-related businesses caused profits to slump 14 percent.The results were positive enough for investors. Alphabet’s shares rose nearly 5 percent on the earnings news to $110. Microsoft’s shares jumped $10, or nearly 4 percent, to $262. Executives at both companies said they saw evidence of a weaker economy. “We are not immune to what is happening in the macro broadly,” Satya Nadella, Microsoft’s chief executive, said on a call with analysts. Alphabet’s chief financial officer, Ruth Porat, told analysts that a pullback in spending by some advertisers reflected “uncertainty about a number of factors.”Few are betting that the earnings reports will change the Fed’s approach. Its policymakers are meeting this week, and they are widely expected to continue raising benchmark interest rates. While central bankers “will likely acknowledge a recent weakening in economic momentum, the Fed will likely feel the need to appear resolute in battling inflation until there are clear signs that it is abating,” wrote David Kelly, the chief global strategist of J.P. Morgan Asset Management, in a note to clients earlier this week.HERE’S WHAT’S HAPPENING Kraken, the crypto exchange, is under investigation for possible sanctions violations. The Treasury Department is looking into whether Kraken illegally allowed users in Iran and elsewhere to buy and sell digital tokens. Shares of Coinbase, a larger crypto exchange, plunged yesterday after reports that the S.E.C. was investigating whether it allowed trading in unregistered securities. Cathie Wood’s Ark funds reportedly dumped Coinbase shares yesterday for the first time this year.Antitrust legislation aimed at Big Tech may be off the table for now. Chuck Schumer, the Senate majority leader, told donors at a Capitol Hill fund-raiser yesterday that the American Innovation and Choice Online Act, which he had promised to bring to a vote this summer, lacks the support needed to get it to the Senate floor, Bloomberg reported. The bill’s bipartisan backers have been pressuring Schumer to act fast, before midterm elections that could change the balance of power in Congress.One America News, once a dependable Trump promoter, is struggling to survive. The network is being dropped by major carriers and faces a wave of defamation lawsuits for its outlandish stories about the 2020 election. OAN’s most recent blow is from Verizon, which will stop carrying the network on its Fios television service this week. It is now available to only a few thousand people who subscribe to regional cable providers.Teva Pharmaceuticals reaches a tentative $4.25 billion settlement over opioids. The proposed settlement, which is with some 2,500 local governments, states and tribes, would end thousands of lawsuits against one of the largest producers of the painkillers during the height of the opioid epidemic.Florida’s largest utility secretly funded a website that attacked its critics. Florida Power & Light bankrolled and controlled The Capitolist, a news site aimed at Florida lawmakers, through intermediaries from an Alabama consulting firm, an investigation by The Miami Herald found. The site claimed to be independent, but it advocated rate hikes and legislative favors in efforts that were directed by top executives at the utility.BlackRock downshifts on E.S.G. BlackRock, the world’s largest asset manager, slashed its support for shareholder proposals on environmental and social issues this year, backing only 24 percent of such resolutions in the proxy season that ended in June, down from 43 percent in the previous period. The firm, which has long led the conscious investing movement, said this year’s proposals were “less supportable” and cited new regulatory guidance that opened the door to a broader range of policy-related proposals.The firm has criticized overly “prescriptive” resolutions. In a May memo, BlackRock signaled that Russia’s war in Ukraine was straining global energy supplies and shifting its calculations. “Many climate-related shareholder proposals sought to dictate the pace of companies’ energy transition plans despite continued consumer demand,” wrote the firm’s global head of investment stewardship, Sandy Boss. She noted that shareholders generally supported fewer environmental and social proposals this year as well, voting for 27 percent of resolutions, down from 36 percent in the previous proxy period.Opposition to E.S.G. is mounting. The environmental, social and governance investment push has been labeled “woke capitalism” by critics and is under fire from executives like Tesla’s Elon Musk, major investors like Bill Ackman and Republican politicians. In a speech yesterday, former Vice President Mike Pence, a possible 2024 hopeful, said that big government and big business were together advancing a “pernicious woke agenda.”E.S.G. supporters say critics may have a point. Andrew Behar, C.E.O. of the shareholder advocacy group As You Sow, agrees that many supposed E.S.G. investments don’t reflect true sustainability — with ever more capital directed toward the idea and many funds failing to live up to their promises. Behar argued that more corporate disclosures — which anti-E.S.G. groups oppose — would help to ensure that green investing actually works. He argues that critics also ignore a key financial incentive driving investor interest: knowing and lowering the costs of environmental issues throughout company operations, including risks from changing weather and the transition to more sustainable models. “We don’t have an E.S.G. problem,” Behar told DealBook. “We have a naming problem.”“I quit Starbucks. I had to. I just didn’t feel like that was justifiable. It’s like a small car payment.” — Fontaine Weyman, a 43-year-old songwriter from Charleston, S.C., on changing her coffee habits. Many Americans are dealing with the fastest inflation of their adult lives across a broad range of goods and services.Instagram tries to explain itself Instagram responded yesterday to criticism from some of its most popular users, including Kylie Jenner, about new features that made it more like its top rival, TikTok, the fast-growing video app owned by the Chinese company ByteDance.Adam Mosseri, Instagram’s head, said that it was experimenting with several changes, and that he knew users were unhappy. “It’s not yet good,” he said of some of the tweaks in a video post. He stressed Instagram’s commitment to photos, the app’s original focus, but said, “I’m going to be honest, I do believe that more and more of Instagram is going to become video over time.”Reels, a short-video product, is one of the six main investment priorities at Meta, which owns Facebook and Instagram, according to an internal memo last month from Chris Cox, the company’s chief product officer. Cox said that users had doubled the amount of time they spent on Reels year over year, and that Meta would prioritize boosting ads in Reels “as quickly as possible.” Last week, Instagram announced that almost all videos in the app would be posted as Reels.The changes come as Meta heads into a new phase. Mark Zuckerberg, its founder and chief executive, has cut costs, reshuffled his leadership team and made clear that low-performing employees will be let go, writes The Times’s Mike Isaac. “Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said on a call late last month. In recent months, profit at Meta has fallen and revenue has slowed as the company has spent lavishly on augmented and virtual reality projects, and as the economic slowdown has hurt its advertising business.The high-profile complaints about Instagram’s revamp started in recent days, when Kylie Jenner, the beauty mogul with 361 million Instagram followers, shared an image on the site that read: “Make Instagram Instagram again. (stop trying to be tiktok i just want to see cute photos of my friends.) Sincerely, everyone.”“PRETTY PLEASE,” Kim Kardashian, Jenner’s half sister and the seventh-most-followed Instagram user, echoed in a later post. Yesterday, Chrissy Teigen, a model and author with 39 million followers, responded to Mosseri in a tweet, saying, “we don’t wanna make videos Adam lol.”Companies have reason to listen when social media stars speak up, writes The Times’s Kalley Huang. In 2018, after Snapchat overhauled its interface, Jenner tweeted: “sooo does anyone else not open Snapchat anymore? Or is it just me….” Within a week, Snap, the app’s parent company, had lost $1.3 billion in market value.THE SPEED READ DealsThe activist investor Elliott Management reportedly has a stake in Paypal and is pushing it to cut costs faster. (WSJ, Bloomberg)Twitter shareholders will be asked to vote on Elon Musk’s potential acquisition in September. (Bloomberg)PolicyThe Senate advanced an industrial policy bill that includes more than $52 billion in subsidies for chip makers building U.S. plants. (NYT)The short seller Carson Block is being sued over a $14 million award from the S.E.C. that raised questions about the agency’s whistle-blower program. (Bloomberg)After Apple launched a “buy now, pay later” service, the top U.S. consumer finance regulator warned Big Tech about undermining competition in the sector. (FT)A federal judge ruled that Uber doesn’t have to offer wheelchair-accessible cars in every city. (The Verge)Best of the restCredit Suisse, which reported larger second-quarter losses than expected, replaced its C.E.O. (FT)Customers are paying billions of dollars in fees for “free” checking. (Bloomberg)The default settings in Apple, Google, Amazon and Microsoft products that you should turn off right away. (NYT)This man sells mud to Major League Baseball. (NYT)“The Case of the $5,000 Springsteen Tickets” (NYT)R.I.P., Choco Taco. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      President Biden’s Human Rights Dilemma

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      The complications of keeping campaign promises.It was a fraught fist bump.As you heard on Monday’s episode, President Biden’s chosen greeting for Crown Prince Mohammed bin Salman of Saudi Arabia became a diplomatic drama.After years of bombastic foreign policy tweets, analyzing the subtleties of Mr. Biden’s behavior feels like a throwback to the tan-suit era — a time when diplomacy was in the details.But this wasn’t the only fist bump Mr. Biden gave on his tour of the Middle East. He also extended one to Prime Minister Yair Lapid while disembarking from Air Force One in Israel.Below, Rachelle Bonja, the lead producer of the episode, looks more closely at Mr. Biden’s Middle East tour and explains the significance of a few diplomatic decisions we didn’t get the chance to discuss on the show.The big idea: Biden’s human rights dilemmaThe Daily strives to reveal a new idea in every episode. Below, we go deeper on our episode with Ben Hubbard, The Times’s Beirut bureau chief, about President Biden’s foreign policy.At the beginning of his campaign, President Biden set out a clear goal: to make human rights the center of American foreign policy. He promised to return to a previous era of international relations, before Donald J. Trump introduced an “America first” doctrine and withdrew from international agreements. However, Mr. Biden’s visit to Israel and Saudi Arabia quickly became a test of one of his boldest campaign promises.In both countries, Mr. Biden was under pressure to keep his commitment to speak out against human rights abuses, specifically by condemning the recent killings of journalists.As a candidate, Mr. Biden was explicit about how he felt the United States should deal with Saudi Arabia after the 2018 killing of​​ Jamal Khashoggi, a former Washington Post columnist. (American intelligence officials have determined that the crown prince approved the operation to assassinate Mr. Khashoggi.)Mr. Biden said that his plan was to make the Saudis “pay the price, and make them in fact the pariah that they are.”But when the war in Ukraine drove American gas prices over $5 a gallon, Mr. Biden’s approach to the crown prince, who manages the country’s oil reserves, shifted focus.Although Mr. Biden said Friday night that he had confronted the crown prince over the murder during their closed-door meeting, the Saudi government disputed the nature of the interaction. Now the president is being criticized for his apparent compromise on human rights.But this wasn’t the only human rights dilemma Mr. Biden faced on his trip.Before he arrived in the Middle East, the president had not publicly addressed the killing of Shireen Abu Akleh. Ms. Abu Akleh was a Palestinian American journalist for Al Jazeera who was fatally shot in May while wearing a press vest and covering an Israeli raid in the West Bank for the network. Several investigations, including one by The New York Times, found that the bullets had come from the location of an Israeli Army unit.The United Nations’ human rights office concluded that “the shots that killed Abu Akleh and injured her colleague Ali Sammoudi came from Israeli security forces and not from indiscriminate firing by armed Palestinians,” Ravina Shamdasani, a spokeswoman for the agency, said.Despite pressure from Ms. Abu Akleh’s family and others to address the killing, Mr. Biden did not mention Ms. Abu Akleh’s death while he was in Israel.Instead, in Jerusalem, the president reaffirmed his commitment to Israel as an ally and as an “independent Jewish state.” He called for a “lasting negotiated peace between the State of Israel and the Palestinian people.”Mr. Biden later visited Bethlehem in the Palestinian territories, where he spoke about Ms. Abu Akleh and called for accountability in her killing: “The United States will continue to insist on a full and transparent accounting of her death and will continue to stand up for media freedom everywhere in the world,” he said.Ms. Abu Akleh’s family has called for a joint investigation of her killing. While Israel had previously offered to examine the bullet that killed Ms. Abu Akleh in the presence of Palestinian and American representatives, the Palestinian Authority has refused a joint investigation, citing distrust of the Israelis. Mr. Biden’s decision to call for an investigation only while speaking in the Palestinian territories has stoked accusations that the president is trying to shield Israel from scrutiny.The two visits highlight how Mr. Biden has compromised on his previously stated commitments — a contradiction pointed out in a tweet by Hatice Cengiz, Mr. Khashoggi’s fiancée.If he were alive, she wrote, Mr. Khashoggi might have tweeted at Mr. Biden, asking: “Is this the accountability you promised for my murder? The blood of MBS’s next victim is on your hands.”From the Daily team: Your weekend playlistIn October 2020, a group outside the Saudi Consulate in Istanbul commemorated the second anniversary of the death of Jamal Khashoggi.Murad Sezer/ReutersHere is some further listening on the Middle East and its leaders to add to your weekend playlist.Nine Days in Gaza: Last summer, a two-week outbreak of violence occurred between Israelis and Palestinians. We spoke to a resident of Gaza City, Rahf Hallaq, about her life and what the conflict was like for her.Biden’s Saudi Dilemma: More than a year before last week’s meeting with Prince Mohammed, Mr. Biden took the bold step of releasing an intelligence report that implicated the crown prince in the killing of Mr. Khashoggi.The Disappearance of a Saudi Journalist: Saudi Arabia’s crown prince has promoted himself to the West as a reformer determined to create a more free and open society. The killing of Mr. Khashoggi changed that. (From 2018.)On The Daily this weekMonday: What did the meeting between President Biden and Crown Prince Mohammed bin Salman tell us about relations between the countries they lead?Tuesday: Has the era of global cooperation over planet-warming emissions ended?Wednesday: How abortion bans are restricting miscarriage care.Thursday: A prosecutor who worked on the Mueller inquiry discusses the possibility of criminal charges against former President Donald J. Trump.Friday: As the Great Salt Lake dries up, Utah is facing an “environmental nuclear bomb.”That’s it for the Daily newsletter. See you next week.Have thoughts about the show? Tell us what you think at thedaily@nytimes.com.Were you forwarded this newsletter? Subscribe here to get it delivered to your inbox.Love podcasts? Join The New York Times Podcast Club on Facebook. More

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      Draghi’s Fall Reverberates Beyond Italy

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      The downfall of Italy’s prime minister has raised concerns across Europe about the power of populist movements and whether they will erode unity against Russian aggression.ROME — Just over a month ago, Prime Minister Mario Draghi of Italy boarded an overnight train with the leaders of France and Germany bound for Kyiv. During the 10-hour trip, they joked about how the French president had the nicest accommodations. But, more important, they asserted their resolute support for Ukraine in the face of Russian aggression. The pictures of the men tucked in a cabin around a wooden conference table evoked a clubby style of crisis management reminiscent of World War II.The mere fact that Mr. Draghi had a seat at that table reflected how, by the force of his stature and credibility, he had made his country — one saddled by debt and persistent political instability — an equal partner with Europe’s most important powers. Critical to that success was not only his economic bona fides as the former president of the European Central Bank but also his unflinching recognition that Russia’s war presented as an existential challenge to Europe and its values.All of that has now been thrown into jeopardy since a multi-flanked populist rebellion, motivated by an opportunistic power grab, stunningly torpedoed Mr. Draghi’s government this week. Snap elections have been called for September, with polls showing that an alliance dominated by hard-right nationalists and populists is heavily favored to run Italy come the fall.Mr. Draghi’s downfall already amounts to the toppling of the establishment that populist forces across Europe dream of. It has now raised concerns, far transcending Italy, of just how much resilience the movements retain on the continent, and of what damage an Italian government more sympathetic to Russia and less committed to the European Union could do to the cohesion of the West as it faces perhaps its greatest combination of security and economic challenges since the Cold War.“Draghi’s departure is a real problem for Europe, a tough blow,” said Gianfranco Pasquino, professor emeritus of political science at Bologna University. “Draghi had a clear position against the Russian aggression in Ukraine. Europe will lose in compactness because the next prime minister will almost certainly be less convinced that the responsibility for the war lies with Russia.”If there was any question of where the sympathies of European leaders lie in Italy’s power struggle, before his downfall Mr. Draghi received offerings of support from the White House, President Emmanuel Macron of France, Chancellor Olaf Scholz of Germany and others.Mario Draghi, left, and French President Emmanuel Macron examining debris as they visited Irpin, outside Kyiv, Ukraine, last month.Pool photo by Ludovic MarinPrime Minister Pedro Sanchez of Spain wrote “Europe needs leaders like Mario.” When Mr. Draghi made his last-ditch appeal to Italy’s fractious parties to stick with him on Wednesday, Prime Minister Antonio Costa of Portugal wrote him to thank him for reconsidering his resignation, according to a person close to Mr. Draghi.But now, with Mr. Macron lamenting the loss of a “Great Italian statesman,” anxiety has spread around the continent about what will come next.Mr. Draghi’s rebalancing of Italy’s position on Russia is all the more remarkable considering where it started. Italy has among Western Europe’s strongest bonds with Russia. During the Cold War, it was the home of the largest Communist Party in the West, and Italy depended on Russia for more than 40 percent of its gas.Mr. Draghi made it his mission to break that pattern. He leveraged his strong relationship with the U.S. treasury secretary, Janet Yellen, to spearhead the sanctions on the Russian Central Bank.By the example of his public speeches, he pressured his allies, including Mr. Macron, to agree that Ukraine should eventually be a member of the European Union.In the days before the fatal vote in the Senate that brought down his government, Mr. Draghi visited Algeria to announce a gas deal by which that country will supplant Russia as Italy’s biggest gas supplier.Those achievements are now at risk after what started last week as a rebellion within his coalition by the Five Star Movement, an ailing anti-establishment party, ended in a grab for power by conservatives, hard-right populists and nationalists who sensed a clear electoral opportunity, and went for the kill.They abandoned Mr. Draghi in a confidence vote. Now, if Italian voters do not punish them for ending a government that was broadly considered the country’s most capable and competent in years, they may come out on top in elections.Prime Minister Draghi speaking to ministers and Senators on Wednesday, the day his national unity coalition collapsed. Andreas Solaro/Agence France-Presse, via Getty ImagesThe maneuvering by the alliance seemed far from spontaneous.Ahead of the vote, Matteo Salvini, the leader of the hard-right League party, huddled with former prime minister Silvio Berlusconi over a long sweaty lunch at the mogul’s villa on the Appian Way and discussed what to do.Giorgia Meloni, the leader of the Brothers of Italy, a party with post-fascist roots who has incessantly called for elections from the opposition, said she spoke with Mr. Berlusconi a few days earlier and that he had invited her to the meeting as well, but that she demurred, saying it was better they meet after the vote. She said she spoke on the phone with Mr. Salvini only after Mr. Draghi’s speech in parliament.“I didn’t want them to be forced to do what they did,” she said, referring to Mr. Salvini and Mr. Berlusconi, who abandoned Mr. Draghi and collapsed the government. “I knew it would only work if they were sure about leaving that government.”Each has something to be gained in their alliance. Mr. Salvini, the hard right leader of the League party, not long ago the most popular politician in the country, had seen his standing eroded as part of Mr. Draghi’s government, while Ms. Meloni had gobbled up angry support from the opposition, supplanting him now as Italy’s rising political star. Mr. Berlusconi, nearly a political has-been at age 85, was useful and necessary to both, but also could use their coattails to ride back to power.Together, polls show, they have the support of more than 45 percent of voters. That is worrying to many critics of Russia. Mr. Salvini wore shirts with Mr. Putin’s face on them in Moscow’s Red Square and in the European Parliament, his party signed a cooperation deal with Mr. Putin’s Russia United party in 2017.Ms. Meloni, in what some analysts see as a cunning move to distinguish herself from Mr. Salvini and make herself a more acceptable candidate for prime minister, has emerged as a strong supporter of Ukraine.League leader Matteo Salvini and Brothers of Italy leader Giorgia Meloni meeting with with Silvio Berlusconi, right, in October 2021.Guglielmo Mangiapane/ReutersMr. Berlusconi used to host Mr. Putin’s daughters at his Sardinian villa and was long Mr. Putin’s closest ally in Western Europe. But now, some of Mr. Berlusconi’s longtime backers say, he has forgotten his European values and crossed the Rubicon to the nationalist and Putin-enabling side.Renato Brunetta, Italy’s Minister for Public Administration, and a long time member of former Prime Minister Silvio Berlusconi’s Forza Italia, quit the party after it joined with the populist League party in withdrawing support from Mr. Draghi and destroying the government.He said he left because Mr. Berlusconi’s decision to abandon the government was irresponsible and antithetical to the values of the party over the last 30 years. Asked whether he believed Mr. Berlusconi, sometimes shaky, was actually lucid enough to make the decision, he said “it would be even more grave” if he was.Italy, long a laboratory for European politics, has also been the incubator for the continent’s populism and transformation of hard-right movements into mainstream forces.When Mr. Berlusconi entered politics, largely to protect his business interests in the 1990s, he cast himself as a pro-business, and moderate, conservative. But in order to cobble together a winning coalition, he had brought in the League and a post-fascist party that would become Ms. Meloni’s.Now the situation has inverted. Ms. Meloni and Mr. Salvini need Mr. Berlusconi’s small electoral support in order to win elections and form a government. They are in charge.“It is a coalition of the right, because it is not center-right anymore,” said Mr. Brunetta. “It’s a right-right coalition with sovereigntist tendencies, extremist and Putin-phile.”Supporters of Mr. Draghi take some solace in the fact that he will stick around in a limited caretaker capacity until the next government is seated, with control over issues related to the pandemic, international affairs — including Ukraine policy — and the billions of euros in recovery funds from Europe. That money is delivered in tranches, and strict requirements need to be met before the funds are released.Supporters of Mr. Draghi acknowledged that major new overhauls on major problems such as pensions were now off the table, but they argued that the recovery funds were more or less safe because no government, not even a hard-right populist one, would walk away from all that money, and so would follow through on Mr. Draghi’s vision for modernization funded by those euros.But if the last week has shown anything, it is that political calculations sometimes outweigh the national interest.Supporters of Prime Minister Draghi demonstrating in Milan on Monday.Mourad Balti Touati/EPA, via ShutterstockThe government’s achievements are already “at risk” over the next months of Mr. Draghi’s limited powers, said Mr. Brunetta, but if the nationalist front won, he said, “obviously it will be even worse.”Mr. Brunetta said Mr. Draghi arrived on the political scene in the first place because there was a “crisis of the traditional parties” in Italy. He said that the 17 months in government, and the support it garnered in the public, showed that there was “a Draghian constituency,” which wanted moderate, pragmatic and value-based governance.The problem, he said, was there were “no political parties, or especially a coalition, to represent them” and he hoped one could be born before the election but “there was little time.”And in the meantime, he said, some things were for sure. Italy had lost influence in Europe and the continent would suffer, too, for the loss of Mr. Draghi.“Europe,” he said, “is weakened.”Gaia Pianigiani More

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      Amazon Acquires One Medical in Push Into Health Care

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      The internet giant acquired One Medical, a national chain of primary care clinics, for $3.9 billion.Twitter’s shares fell after the social media platform, which is locked in a legal battle with Elon Musk over its future ownership, reported that it lost $270 million in the second quarter. Alphabet, Apple, Meta and Microsoft will report their earnings next week, with many forecasters expecting more disappointing results. Now delivering diagnoses.Patrick T. Fallon/Agence France-Presse — Getty ImagesJassy’s big bet on health careYesterday, Amazon announced its first major acquisition during Andy Jassy’s tenure as C.E.O., with the $3.9 billion purchase of One Medical, a national chain of primary care clinics that is backed by the private equity firm the Carlyle Group.Amazon’s ambitions in health care go back more than two decades, writes The Times’s Karen Weise. But none of its forays into the sector have had notable success, or have been as big as the One Medical acquisition. Its previous bets in health care include:Investing in Drugstore.com in 1999. (Jeff Bezos served on the company’s board.)Teaming up with JPMorgan and Berkshire Hathaway in 2018 to start Haven, in an amorphous effort to explore new ways to deliver health care to their work forces. The venture formally ended last year.Buying the start-up PillPack, an online pharmacy that focuses on recurring monthly medications, in 2018 for $753 million. It later began Amazon Pharmacy, which, like PillPack, delivers medications, and it integrated discounts for customers with Prime memberships.Running its own primary and urgent care service, called Amazon Care, beginning in 2019, to treat its employees. Amazon Care has tried to get other employers to offer its service, with limited success.The One Medical deal gives Amazon access to more data. One Medical built its own electronic medical records system, and it has 15 years’ worth of medical and health-system data that Amazon could tap. Although individual patient records are generally protected under federal health privacy laws, the big data expertise that has fueled Amazon’s success can be powerful in health care — for predicting costs, targeting interventions and developing products and treatments.It could also test the new antitrust regime. Last night, Senator Amy Klobuchar said she was calling on the F.T.C. to “thoroughly investigate” the deal, citing Amazon’s previous investments in health care and its access to data. And while Amazon hardly dominates heath care, the Justice Department and the F.T.C. have sought to rewrite the rules for reviewing big mergers to broaden the scope for intervention. Lina Khan, who leads the F.T.C., has long contended that there is an antitrust argument against Amazon. She has not so far filed a suit against the company in her time as chair. Her agency reviewed and approved Amazon’s acquisition of the movie studio Metro-Goldwyn-Mayer, though that was before Democrats held a majority on the commission.When asked by The Washington Post last month about Amazon’s push into health care, Khan said, “Our current approach to thinking about mergers still has more work to do to fully understand what it means for these businesses to enter into all these other markets and industries.”HERE’S WHAT’S HAPPENING Turkey promises a deal to get grain out of Ukraine’s blocked ports. The Turkish presidency says that a signing ceremony will be held today for a deal between Ukraine and Russia aiming to allow millions of tons of Ukrainian grain to be exported, alleviating a global food shortage.President Biden has “very mild” Covid symptoms. Biden, 79, tested positive for the coronavirus yesterday. Karine Jean-Pierre, the White House press secretary, said he would “continue to carry out all of his duties fully” while isolating.Snap shares plunge after a disappointing quarterly report. The company, which runs the social media platform Snapchat, said it would “substantially reduce” hiring and that revenue growth in its current uncompleted quarter was approximately zero. Jessica Lessin, the editor of the tech-focused news site The Information, said, Snap’s results “raise questions about digital advertising in the current macroeconomic climate.”The U.S. government files its first criminal case about crypto insider trading. A former Coinbase employee and two other men were charged with buying and selling digital assets based on confidential information from the cryptocurrency exchange. The three men, one of whom has fled to India, are said to have made $1.5 million on 14 trades over a 10-month period.China will faces severe heat waves over the next 10 days. Regions could be hit by temperatures of 40 degrees Celsius (104 degrees Fahrenheit) or higher, forecasts suggest, and some cities in Zhejiang Province, which has many factories, issued red alerts today.Trump’s inaction in actionAs a mob of his supporters assaulted the Capitol on Jan. 6, Trump refused to stop them, according to former Trump administration officials, who testified yesterday to the House committee investigating the attack. Over 187 minutes, Trump sat in his dining room off the Oval Office, watching the violence on television, not just ignoring calls to respond, but repeatedly signaling that he did not want anything done.It was one of the most dramatic hearings of the inquiry, write The Times’s Luke Broadwater and Maggie Haberman. Still, the assertion that Mr. Trump was derelict in duty raised ethical, moral and legal questions, but it might not be the basis for a criminal charge, according to Representative Elaine Luria, Democrat of Virginia, who led much of last night’s proceedings. The media critic Brian Stelter, of CNN, called yesterday evening’s hearing “the most Fox-centric hearing yet — and none of it was shown live by Fox,” underscoring how divided the U.S. media landscape is.Here were the takeaways:Trump ignored a torrent of pleas from inside and outside the White House to call off his supporters. Members of Congress, aides and his own daughter, Ivanka, pleaded with Mr. Trump to call off the violence as it unfolded in front of him on television, The Times’s Michael S. Schmidt notes. Representative Adam Kinzinger, the Illinois Republican who helped lead the hearing, said that the president, after learning of the Capitol breach, resisted putting out a tweet saying, “Stay peaceful.”Even the next day, Trump was not fully willing to concede the race. Outtakes from a taped address of the president’s speech on Jan. 7 showed the president saying he didn’t want to say “the election is over.”Members of Pence’s Secret Service security detail feared for their lives as protesters drew nearer. “I don’t like talking about it, but there were calls to say goodbye to family members, so on and so forth,” one official, whom the committee declined to name, said.Gen. Mark A. Milley, the chairman of the Joint Chiefs of Staff, the nation’s highest-ranking military officer, told the panel: “You’re the commander in chief. You’ve got an assault going on on the Capitol of the United States of America, and there’s nothing? No call? Nothing? Zero?”More hearings are planned for September.YouTube’s policy on pulling abortion-related content has skeptics YouTube said on Twitter yesterday that it would be removing videos over the next few weeks that provided instructions for “unsafe abortion methods.” Citing its medical misinformation policies, it also said that it would be removing content that promoted “false claims about abortion safety” and that it would start including information from health authorities alongside abortion content.YouTube’s announcement was a step in the right direction, but it should have happened a long time ago, said Imran Ahmed, the C.E.O. and founder of the nonprofit organization the Center for Countering Digital Hate. “Even though we welcome any change in their rule, why on earth were home remedies for abortion ever permitted on their site?” he told DealBook, citing the medical risks associated with using dangerous methods. He recommended that YouTube provided a hotline to groups that offer accurate information on reproductive health care.Since the Supreme Court’s decision to overturn Roe v. Wade in June, abortion has been banned in at least eight states, and videos offering home remedies to induce abortions have spread on YouTube, TikTok and social media platforms. Experts have urged caution, saying these methods may be dangerous and there is no data on whether they work. A 2020 survey published in the journal JAMA Network Open estimated that 7 percent of American women would attempt a self-managed abortion at some point in their lives.For YouTube, the challenge will be enforcement, said Katharine Trendacosta, an associate director of policy and activism at the Electronic Frontier Foundation, a nonprofit digital rights group. Trendacosta told DealBook that she questioned whether YouTube had the staffing and processes in place to pull this off. “I have trouble with these announcements because it doesn’t tell me if they’re going to hire enough people to implement it,” she said.THE SPEED READ DealsThe U.K. competition watchdog cleared a merger of the sports broadcasting businesses of BT Group and Warner Bros. Discovery. (Reuters)Malaysia’s AMMB, a financial services manager, is reportedly considering a sale of its asset-management unit. (Bloomberg)“Amazon Wants 100,000 Electric Vans. Can Rivian Deliver?” (NYT)The toymaker Mattel reported a 20 percent jump in sales. (NYT)PolicyRussia is keeping Germany guessing on gas shipments. (NYT)Truckers protesting a labor law have blocked roads that serve the Port of Oakland in California. (NYT)The E.C.B. has a new tool to keep bond markets in check. It doesn’t want to use it. (NYT)In good news for consumers, the economy and President Biden, gas prices are finally falling. (The Morning)Best of the restSwatch’s $260 MoonSwatch is helping to revive the brand. (Bloomberg Businessweek)A look at the PGA Tour’s lobbying effort against the Saudi-backed LIV golf league. (CNBC)A 35,000-acre forest fire in Spain was accidentally started by a Dutch carbon offset company. (Vice)Despite Putin’s efforts to destroy Ukraine’s economy, tech companies there are still thriving. (NYT)“Pro-Putin Biker Gang Rides Into E.U. Sanctions Roadblock” (FT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Twitter Takes Round 1

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      Judge Kathaleen McCormick granted the social media giant’s request for an expedited hearing. Now, the two sides are gearing up for a trial in October.Twitter: 1, Musk: 0.Jim Wilson/The New York TimesTwitter suit takes the fast laneTwitter won its effort to expedite its trial with Elon Musk yesterday, in its lawsuit to force Musk to close his $44 billion acquisition of the company. So many people tried to listen to the proceedings that the dial-in hit capacity — and we hear advisers across Wall Street were huddled around speakerphones.It’s a big win for Twitter. In granting an expedited hearing, Judge Kathaleen McCormick effectively repudiated the notion that the court needed to allow time for a deep dive into whether Twitter had accurately counted the number of bots on its platform. She cited the “cloud of uncertainty” that was hanging over the company the longer the case went undecided as the reason for her decision to fast-track the trial. And in what may be another good sign for Twitter, Judge McCormick said she was unsure that damages would be a sufficient remedy for the social media company, which wants Musk to buy it, not pay damages to walk away.Please see Page 5. A centerpiece of Musk’s claims is that Twitter’s disclosures about the percentage of active users on its platform that are bots are misleading, which would have a “material adverse effect” on the company’s value. But Musk has yet to tell the court what, exactly, in Twitter’s disclosures might be false. This became an issue when Musk’s lawyer at Quinn Emanuel, Andy Rossman, took aim at Page 5 of Twitter’s annual report, which explains its bot count. But Twitter’s lawyer at Wachtell, Bill Savitt, in his rebuttal, noted that Twitter fills that page with hedges and warnings that numbers might be off. (It reads, in part: “Our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated.”) Of Twitter’s disclosure, Savitt said: “This does not require a recreation of all things known to humanity.” Judge McCormick seemingly agreed.The two sides are gearing up for a trial in October. Over the next weeks, they have to agree on schedules for depositions and discovery. And Musk will have time to prepare for another hearing before Judge McCormick that month: a defense of his whopping Tesla pay package — money that could come in handy if she forces him to buy Twitter.HERE’S WHAT’S HAPPENING Netflix loses fewer subscribers than expected. The streaming service reported yesterday that it lost nearly 1 million subscribers in the second quarter, far fewer than it had forecast. What’s more, Netflix said some of its strategies to stem losses, like an ad-supported option for consumers and a crackdown on password sharing, would boost revenue as soon as next year.A heroic act in an Indiana mall shooting renews the debate over gun access. In the days since a 22-year-old armed bystander killed a gunman two minutes into a shooting spree, the U.S. is again debating the wisdom of easier access to guns. But an analysis of 433 active shooter attacks in the U.S. between 2000 and 2021 found just 22 had ended with a bystander shooting the attacker, according to the Advanced Law Enforcement Rapid Response Training Center at Texas State University.The CHIPS Act passes a procedural hurdle in the Senate with more than 60 votes. The legislation, stalled for more than a year, gives chip manufacturers what they say is help they need to build factories in the U.S. The Senate is expected today to officially vote to pass the bill, which has been slimmed down and still needs to return to the House before it can go to the president.Intelligence agencies say Russia remains a threat in elections. Top F.B.I. and National Security Agency officials warned yesterday that Russia could still seek to meddle or promote disinformation during the 2022 midterm races, even as it wages war in Ukraine. Iran and China also remained potent threats, the officials said.The House moves to protect same-sex marriage from Supreme Court reversal. New legislation, which garnered some Republican support, would recognize same-sex marriages at the federal level, but it faces an uncertain path in the Senate. The move was a direct answer to Justice Clarence Thomas’s concurring opinion in the ruling last month that overturned federal abortion rights.The loans that may haunt Silicon ValleyTech workers have taken out loans in recent years based on the value of their start-up stock. But as the start-up economy has deflated, that may come back to haunt them, writes The Times’s Erin Griffith.Start-up loans stem from the way workers are typically paid. As part of their compensation, most employees at privately held tech companies receive stock options. That’s where loans and other financing options come in. Start-up stock is used as a form of collateral for cash advances. The loans vary in structure, but most providers charge interest and take a percentage of the worker’s stock when the company sells or goes public. Some are structured as contracts or investments.This lending industry has boomed in recent years. Many of the providers were created in the mid-2010s as hot start-ups like Uber and Airbnb put off initial public offerings of stock as long as they could, hitting private market valuations in the tens of billions of dollars.Debate has ignited in Silicon Valley over the proliferation of loans backed by stakes in still-private start-ups. Proponents say the loans are necessary for employees to participate in tech’s wealth-creation engine. But critics say the loans create needless risk in an already-risky industry and are reminiscent of the dot-com era in the early 2000s, when many tech workers were badly burned by similar loans.As the start-up economy deflates, these loans can be risky. While most are structured to be forgiven if a start-up fails, employees could still face a tax bill because the loan forgiveness is treated as taxable income.“No one’s been thinking about what happens when things go down,” said Rick Heitzmann, an investor at FirstMark Capital. “Everyone’s only thinking about the upside.”“The thing I’ve always been taught by my parents is to be the first one in and last one out. But there’s no one else there.”— Alex Hyman, who pictured his internship at a Los Angeles entertainment agency this summer as being one part “Entourage” and one part “The Office,” but found it more like “Home Alone.” It’s a common experience in an age of remote-working bosses.Mooch’s crypto problemAnthony Scaramucci, who is famous for his 11-day stint as former President Donald Trump’s communications director, is facing a mass exodus of investors from his funds.Earlier this week, Bloomberg reported that Scaramucci’s firm SkyBridge Capital had halted withdrawals from one of its smaller funds, Legion Strategies, which contains just over $200 million. But Scaramucci is also struggling to hold onto investors in SkyBridge’s flagship fund, the SkyBridge Multi-Adviser Hedge Fund Portfolios, which managed as much as $2 billion at the end of March. Its investments lost nearly a quarter of their value in the second quarter.Investors in SkyBridge’s flagship fund are seeking to withdraw as much as $890 million, or about half of the money that it held as of the end of last month, Scaramucci told DealBook. But many of those investors will be stuck in the fund for a while. Under its rules, investors in the Multi-Adviser fund are only allowed to withdraw money during certain windows. Those used to occur four times a year, but SkyBridge cut them to twice a year in 2020, after big losses at the beginning of the pandemic. Earlier this month, SkyBridge told investors they would only collectively receive about 16 percent of the money they requested. The letter said it was issuing investors’ notes that would be paid no later than October.Scaramucci’s losses come just over a year after SkyBridge’s pivot into crypto. SkyBridge’s flagship fund, which Scaramucci bought from Citigroup, has long specialized in buying and selling stakes of other hedge funds. For a time, that, along with strong performance in the years after the 2008 financial crisis, made Scaramucci one of the most powerful players in the hedge fund industry.Scaramucci says he is still a long-term believer in crypto. The fund manager says that about 22 percent of his flagship fund remained in crypto and related investments as of the end of last month. “I am not smart enough to time the market,” he told DealBook. “But we’ve done a tremendous amount of research and we think anyone who has will see that blockchain technology is good and is the future.”THE SPEED READ DealsPimco bought $1 billion worth of debt backing Apollo’s acquisition of a payments company at a steep discount. (Bloomberg)Start-ups are racing for share of the market for home chargers of electric vehicles, and several have already been acquired. (Reuters)“Sam Bankman-Fried Turns $2 Trillion Crypto Rout Into Buying Opportunity” (Bloomberg Businessweek)PolicyDan Cox, a Trump loyalist, won the primary to be the Republican candidate for governor of Maryland. (NYT)Novavax’s Covid vaccine was cleared for use in the U.S. (NYT)The Secret Service said texts requested by the Jan. 6 commission were probably lost for good. (NYT)U.K. inflation has exceeded economists’ forecasts, hitting 9.4 percent (FT)President Vladimir Putin signaled that Russia would resume gas deliveries through a key pipeline but at a reduced level. (NYT)Best of the restLeaked salary data at Twitter showed a pay gap of as much as 225 percent for the same role in different countries. (Input)Soaring overdose rates in the pandemic reflect widening racial disparities. (NYT)How the pain of past economic crises is haunting Italy. (NYT)“Fighting a Brutal Regime With the Help of a Video Game” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Draghi Says He’ll Stay as Italy’s Prime Minister, if Parties Unite

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      Days after he tendered his resignation, the Italian leader offered a way out of political crisis. Now it depends on the parties to accept or reject it.ROME — Prime Minister Mario Draghi of Italy, who offered to resign last week after a rebellion in his broad national unity government, challenged the country’s fractious parties on Wednesday to stick together for the good of the country as a condition of him staying on.“The only way forward, if we want to stay together, is to rebuild from the top this pact, with courage, altruism and credibility,” Mr. Draghi said in a speech to the Italian Senate, throwing down a gauntlet ahead of confidence votes in the upper and lower chambers of Parliament on Wednesday and Thursday that will determine the fate of his government, along with the stability of Italy and much of Europe at an especially tenuous time.Mr. Draghi, speaking to long applause but also to some heckling, said that the public outcries for the government to continue were “impossible to ignore.”“Italy is strong when it knows how to be united,” he said, calling the period a “miracle” for Italy, but adding that political motivations had “unfortunately” led parties to seek to distinguish themselves, weakening “the desire to move forward together.”That politicking has left Italy teetering on the brink of instability once again after a period of relative calm, progress and expanding influence under Mr. Draghi’s leadership, which has made Italy an essential part of Europe’s united front against Russia in response to its war in Ukraine and its efforts to rebuild its economies amid the pandemic.Now, much will depend on whether Italy’s political parties take up Mr. Draghi’s offer, especially the Five Star Movement, which set off the current crisis by withholding its support last week in a key vote on the government’s spending priorities.That rebellion prompted the offer to resign by Mr. Draghi. Sergio Mattarella, Italy’s president, rejected the resignation and asked Mr. Draghi to address Parliament, where confidence votes will force all of the parties to take responsibility for their decisions.Mr. Draghi told the Parliament on Wednesday that Five Star’s revolt signified “the end” of the pact of trust that had fueled his government, and that it was unacceptable. If one party could do it, anyone “could repeat it,” he warned, adding that ransom demands on the government to suit narrow political interests could become the norm.He said that because he was appointed as a caretaker prime minister and not directly elected, his legitimacy was contingent on “as ample support as possible.”Giuseppe Conte, the leader of the Five Star Movement, this month in Rome. Mr. Draghi told the Parliament on Wednesday that Five Star’s revolt signified “the end” of the pact of trust that had fueled his government, and that it was unacceptable.Massimo Percossi/EPA, via Shutterstock“Are you ready to rebuild this pact?” Mr. Draghi repeated several times, concluding that the answer to this question was owed not to him, but to the Italian people.If Mr. Draghi does not receive the support he asked for on Wednesday, he will resign for good, and many analysts believe that Mr. Mattarella will call for early elections, as soon as September.Mr. Draghi’s speech was an effort to avoid the chaos that such a crisis would most likely bring.On the one hand, he tried to remind Parliament, and the country, all that Italy had been able to achieve since he took power in February 2021 in a government crisis caused by the forced removal of Prime Minister Giuseppe Conte, now the leader of Five Star, which stirred the insurrection against Mr. Draghi. He repeated that the efficacy of the government, its ability to move fast and make quick decisions was rooted in a national unity that “was the best guarantee for a legitimate democracy.”Mr. Draghi said that unity had allowed Italy to get out of the worst phase of the pandemic, funnel financial assistance quickly to those who needed it, cut “useless bureaucracy” that slowed the country, and aided the growth of the economy in a deeply challenging time.He listed key overhauls in a variety of sectors, including increased energy independence from Russia, which he called “essential for the modernization of Italy,” and noted that Italy had already received 45.9 billion euros (about $47 billion) from the European Commission in recovery funds, with €21 billion more on the way. “If we can’t show that we can spend this money well,” he said, Italy would not receive more.Mr. Draghi also attributed Italy’s greater footprint in Europe, and its strong position backing Ukraine with arms and condemning Russian aggression, to the period of political unity.“The merit of these accomplishments was yours,” he told Parliament, adding to long applause, “I have never been as proud to be an Italian as I have been in these moments.”But many analysts believe that they are actually creditable to Mr. Draghi and his reputation as a senior European statesman who saved the euro as the president of the European Central Bank. Without him, they say, the period of stability, and potentially Italy’s support for Ukraine and relevance in Europe, would be imperiled.The Italian government held a confidence vote on Wednesday in the Senate. If Mr. Draghi does not receive the support he asked for, he will resign for good, and many analysts believe that President Sergio Mattarella will call for early elections.Fabio Frustaci/EPA, via ShutterstockMr. Draghi’s willingness to step back, at least momentarily, from the breach overcame the day’s first hurdle for Italians hoping that the current government will continue. But the Senate had five hours of dramatic debate ahead of it, and no one was quite sure what any of the parties would do as they all weighed their personal interests.Five Star, riddled with warring factions, was in a particularly delicate situation, as a decision to back or bolt from the government both seemed likely to splinter the movement and cause defections.It was also unclear if Mr. Draghi would continue or resign without the support of Five Star if many of its members left to support him. Another confidence vote is scheduled for Thursday in the Lower House of Parliament, where more Five Star defections are likely.“What was supposed to be Conte’s vengeance against Draghi became the self-sinking of the former prime minister, whose political limitations have emerged,” wrote Stefano Folli, a political commentator with La Repubblica. “However it ends,” Mr. Folli added, “Five Star is doomed to a marginal role.”As the Senate began its debate on Wednesday, no one was sure what would happen.“It’s all uncertain,” said Giovanni Orsina, a political scientist at Luiss Guido Carli, a university in Rome. “We’ll need to see whether the parties want to play along and still support him.”Mr. Draghi, left, visited Irpin, Ukraine, in June with other European leaders, like President Emmanuel Macron of France.Viacheslav Ratynskyi/ReutersMany of the parties were concerned about an upcoming budget bill, which Mr. Draghi also emphasized in his speech, but there were also excruciating political calculations for each of the individual parties.Five Star, which won 33 percent of the vote in 2018 and is, as a result, still the largest party in the government, has since cratered. It has dreaded elections for years, but as the country’s next scheduled elections approach in early 2023, the downside of early elections has decreased.Still, the party, which has lost about two-thirds of its national support, would stand to be decimated at the ballot box. Mr. Conte’s decision to take a stand last week was widely seen as an effort to regain some of the party’s long lost anti-establishment identity. Instead, it seems to have backfired.Mr. Draghi on Wednesday made it clear that his government would not cave in to Five Star’s demands. He held firm on military support for Ukraine, which Five Star opposes, and for the building of new gas facilities to give Italy energy independence from Russia as a matter of national security, something Five Star has also opposed.He said that Italy’s universal income benefit for its poorest citizens, Five Star’s trademark achievement, was a positive development, but that it needed to be improved so that it actually helped those who needed it and did not become an incentive not to work. For now, it is loathed by the business sector and considered by many to be a drag on employment.Matteo Salvini, center, the leader the League party, on Wednesday in the Senate. The right-wing coalition of which the League is part, with Forza Italia and the hard-right Brothers of Italy, is currently leading in polls.Fabio Frustaci/EPA, via ShutterstockThat hard line was met by heckling and disapproval from parts of the chamber.The center-left Democratic Party, which is most supportive of Mr. Draghi, was also in a difficult position because it was counting on an alliance with Five Star, or what is left of it, to bolster its own electoral fortunes in the next elections. But now an alliance with Five Star — the party that prematurely ended the Draghi era — was itself laden with danger, and fractures had emerged in the left over its wisdom.The right-wing coalition of the League party, led by the nationalist Matteo Salvini; Forza Italia, led by former Prime Minister Silvio Berlusconi; and the hard-right Brothers of Italy, led by Giorgia Meloni, was currently leading in polls, though it was not clear how eager they were to govern at such a delicate time.Mr. Salvini and Mr. Berlusconi have vowed to no longer sit in the same government with Five Star, but they also do not want to risk their credibility — especially with a business community that likes Mr. Draghi — by being seen as the ones who brought down the government. Italy’s political observers were paying especially close attention to what Mr. Salvini would do.In his speech, Mr. Draghi mentioned as part of his government’s program the priorities of powerful League governors in the country’s north who want the prime minister to stay on, potentially driving a wedge between them and Mr. Salvini were he to consider bolting.“Politically, Italians do not love the parties who rip up the government and lead them to elections,” Mr. Orsina said. But a main member of the alliance, Ms. Meloni has skyrocketed in the polls as she stayed in the opposition, and wants elections as soon as possible. More

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      Colombia Election: Angry, Mobilized and Voting for Gustavo Petro

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      A large and loud youth electorate hungry to transform one of Latin America’s most unequal societies could propel Gustavo Petro, a former rebel, to the presidency.May 26, 2022FUSAGASUGÁ, Colombia — The man onstage surrounded by a screaming, sweating, fawning crowd seemed like an odd choice for a youth icon. Gustavo Petro is gray-haired, 62, and, in his speeches, he’s more roaring preacher than conversational TikTok star.But after an improbable rise from clandestine rebel to Bogotá mayor and bullish face of the Colombian opposition, Mr. Petro could soon become the country’s first leftist president, a watershed moment for one of the most politically conservative societies in Latin America.And his ascent has, in no small part, been propelled by the biggest, loudest and possibly angriest youth electorate in Colombia’s history, demanding the transformation of a country long cleaved by deep social and racial inequality.There are now nearly nine million Colombian voters 28 or younger, the most in history, and a quarter of the electorate. They are restive, raised on promises of higher education and good jobs, disillusioned by current prospects, more digitally connected and arguably more empowered than any previous generation.“Petro is change,” said Camila Riveros, 30, wrapped in a Colombian flag at a campaign event this month outside Bogotá, the capital. “People are tired of eating dirt.”Gustavo Petro this month in Santa Marta. He has held a steady lead in most polls, though he may not have enough support to avoid a runoff. As Colombians prepare to vote on Sunday, Mr. Petro has promised to overhaul the country’s capitalist economic model and vastly expand social programs, pledging to introduce guaranteed work with a basic income, shift the country to a publicly controlled health system and increase access to higher education, in part by raising taxes on the rich.Mr. Petro has been ahead in the polls for months — though surveys suggest he will face a runoff in June — and his popularity reflects both leftist gains across Latin America and an anti-incumbent fervor that has intensified as the pandemic has battered the region.“We have a decision to make,” Mr. Petro said at another campaign event this month in the Caribbean city of Cartagena. “We maintain things the way they are, or we scream: Freedom!”But critics say Mr. Petro is ill-suited for office, arguing that his policies, which include a plan to halt all new oil exploration in a country where fuel is a critical export, would ruin the economy.He has also taken direct swings at the country’s major institutions — most notably the armed forces — escalating tensions with military leaders and leading to concerns about the stability of Colombia’s longstanding but vulnerable democracy.Mr. Petro’s main opponent, Federico Gutiérrez, 47, a former mayor of Medellín, the country’s second largest city, and the candidate of the conservative establishment, proposes a more modest path forward.“Of course we need to change many things,” he said in an interview, citing a plan that would ramp up fracking for oil, steer more money to local governments and create a special unit to fight urban crime. “But changes can never mean a leap into the void without a parachute.”A third candidate, Rodolfo Hernández, 77, a former mayor with a populist, anti-corruption platform has been climbing in the polls.Mr. Petro’s main opponent, Federico Gutiérrez, is a former mayor of Medellín, the country’s second largest city, and the candidate of the conservative establishment.The election comes at a difficult moment for the country. Polls show widespread dissatisfaction with the government of the current president, Iván Duque, who is backed by the same political coalition as Mr. Gutiérrez, and frustration over chronic poverty, a widening income gap and insecurity, all of which have worsened during the pandemic.Among those hurt the most by these problems are younger Colombians, who are likely to play a big role in determining whether the country takes a major lurch to the left.Young people led anti-government protests that filled the streets of Colombia last year, dominating the national conversation for weeks. At least 46 people died — many of them young, unarmed protesters and many at the hands of the police — in what became referred to as the “national strike.”Some analysts expect young people to vote in record numbers, energized not just by Mr. Petro, but by his running mate, Francia Márquez, 40, an environmental activist with a gender, race and class-conscious focus who would be the country’s first Black vice president.“The TikTok generation that is very connected to Francia, that is very connected to Petro, is going to be decisive,” said Fernando Posada, 30, a political analyst.Some analysts expect young people to vote in record numbers, energized not just by Mr. Petro but by his running mate, Francia Márquez, an environmental activist.Today’s younger generation is the most educated in Colombian history, but is also grappling with 10 percent annual inflation, a 20 percent youth unemployment rate and a 40 percent poverty rate. Many — both supporters and critics of Mr. Petro — say they feel betrayed by decades of leaders who have promised opportunity but delivered little.In a May poll by the firm Invamer, more than 53 percent of voters ages 18 to 24 and about 45 percent of voters ages 25 to 34 said they were planning to vote for Mr. Petro. In both age categories, less than half those numbers said they would vote for Mr. Gutierrez or Mr. Hernández.Natalia Arévalo, 30, a single mother of three, marched for days during protests last year, with her daughter, Lizeth, 10, wearing a placard around her neck that read: “What awaits us children?”“You have to choose between paying your debts and feeding your kids,” said Ms. Arévalo, who supports Mr. Petro.“You can’t eat eggs, you can’t eat meat, you can’t eat anything,” she added. “We have to give a 180-degree turn to all that we’ve had for the last 20 years.”José Fernando Mazo, a law student, waving in the crowd at a rally for Mr. Petro in Cartagena on May 14.To be sure, many young voters are skeptical of Mr. Petro’s ability to deliver on his promises.In Fusagasugá, Nina Cruz, 27, a cafe worker, said Mr. Petro would fail Colombia’s struggling families, and she was particularly repulsed by his past as a member of a leftist rebel group.The country has a long history of violent militias that claim to help the indigent — and end up terrorizing them.“What he is saying is: ‘I’m going to help the poor,’” she said. “That’s a total lie.”Mr. Petro, an economist, grew up outside Bogotá. As a teenager, he joined the M-19, a leftist urban militia that sought to seize power and claimed to promote social justice.The group was never as large or as violent as the country’s main guerrilla force, the Revolutionary Armed Forces of Colombia, or FARC. But in 1985, the M-19 occupied a national judicial building, sparking a battle with the police and the military that left 94 people dead.Mr. Petro, who did not participate in the takeover, ended up in prison for his involvement with the group.He eventually demobilized and ran for a senate seat, emerging as the combative face of the left, pushing open conversations about corruption and wrongdoing.Some critics have warned that Mr. Petro’s energy proposals would bankrupt the country. Oil represents 40 percent of Colombia’s exports and Juan Carlos Echeverry, a former finance minister, has said that halting oil exploration “would be economic suicide.’’Ballistic shields on stage during Mr. Petro’s appearance in Cartagena. He has been the recent target of death threats. Mr. Petro also has a reputation for an authoritarian streak. As mayor of Bogotá, he circumvented the City Council and often failed to listen to advisers, said Daniel Garcia-Peña, who worked with Mr. Petro for a decade before quitting in 2012. In his resignation letter Mr. Garcia-Peña called Mr. Petro “a despot.”The election comes as polls show growing distrust in the country’s democratic institutions, including the country’s national registrar, an election body that bungled the initial vote count in a congressional election in March.The error, which the registrar called procedural, has led to concerns that losing candidates will declare fraud, setting off a legitimacy crisis.The country is also being roiled by rising violence, threatening to undermine the democratic process. The Mission for Electoral Observation, a local group, called this pre-election period the most violent in 12 years.Candidates pushing change have been murdered on the campaign trail before.Both Mr. Petro and Ms. Márquez have received death threats, and at his campaign event in Cartagena, he took the stage flanked by men holding bulletproof shields.Young supporters of Mr. Petro at a rally in Cartagena on May 14. A recent poll found that Mr. Petro was the leading candidate among voters 18 to 34.Some voters held signs that read “Black children’s lives matter,” and “if it’s not Petro, we’re screwed.”There was excitement — but also trepidation.“What we want are opportunities for everyone,” said Lauren Jiménez, 21, a university student.But “if Petro can’t follow through, I know we will see the same thing that happened with the Duque government: a social explosion,” she warned. “Because we’re tired of staying quiet.”Sofía Villamil More