July 14, 2024

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Jack Ma Appears in Public After Challenging Beijing: Live Business Updates

13 min read
Jack Ma appearing at a livestreamed event on Wednesday.

Jack Ma has filmed action scenes with big-time martial artists, sung duets with pop stars and appeared at corporate rallies dressed as a glam rocker and as a masked Michael Jackson impersonator. A wallflower he is not.

So speculation ran rampant after the prominent entrepreneur and co-founder of the Alibaba Group vanished from public view late last year. He had criticized Chinese regulators for what he called their overly cautious attitude toward the country’s financial system, and the authorities cracked down on his business empire shortly afterward. After that he began to skip previously scheduled appearances, prompting questions in China and in the global news media about his fate.

Mr. Ma now appears to be attempting to put the speculation to rest.

On Wednesday, he made his first public appearance since late October. He spoke at a livestreamed event honoring educators in China’s village schools. He did not address his troubles but said he would spend more time in philanthropic endeavors.

“In this time, my colleagues and I have been learning and thinking,” he said, according to a transcript of his remarks published in the local news media. “We will throw ourselves more resolutely into educational philanthropy.”

Mr. Ma, a former English teacher, said that it was the responsibility of business executives of his generation to work toward common prosperity by revitalizing rural areas and developing village education. His speech was consistent with his recent efforts to step away from Alibaba’s day-to-day operations and focus more on philanthropy, though he retains considerable sway over his business empire.

His remarks were widely covered in the Chinese state-run news media, suggesting at the very least that Beijing’s censorship machine approved of his remarks. His appearance relieved some investors, who drove Alibaba’s Hong Kong-traded shares up about 9 percent in afternoon trading.

Mr. Ma, who ran Alibaba from its founding in 1999 to its rising as one of the world’s biggest and most valuable technology companies, has long been cautious around the Chinese government. Like many entrepreneurs in the country, he has forged ties with Beijing officialdom to head off any regulatory troubles.

But the rise of Alibaba’s sister company, Ant Group, put him increasingly at odds with China’s state-dominated financial system. Ant Group, which was once an Alibaba subsidiary and offers services like electronic payments and lending, now plays a huge role in the financial lives of many Chinese people. It had planned an initial public offering for late last year in Shanghai and Hong Kong, in what was widely expected to be the largest fund-raising of its kind.

But in October, at a public event, Mr. Ma accused Chinese state-run banks of behaving like “pawnshops” and the country’s financial regulators of limiting innovation by obsessing over risk.

About a week later, the government halted Ant Group’s I.P.O. and later ordered it to shake up its business practices. Then it began an antitrust investigation into Alibaba.

Amid the official blowback, Mr. Ma began to bow out of previously scheduled appearances, including as a judge on an African entrepreneur-themed talent show that he had created. That ignited speculation, especially after other entrepreneurs who challenged Chinese officialdom were dealt heavy punishments.

Anthony Levandowski in California in 2019. He was one of Silicon Valley’s most prominent engineers but was sentenced in August to 18 months in prison.
Credit…Jason Henry for The New York Times

Among the dozens of politicians and business figures pardoned by President Trump in the twilight of his time in the White House is a former senior engineer at Google who pleaded guilty to stealing trade secrets related to self-driving car technology.

The engineer, Anthony Levandowski, a prominent member of Google’s moonshot effort to build autonomous vehicles, was sentenced to 18 months in prison in August after he was convicted of stealing information from Google before founding his own autonomous-vehicle company. A White House statement issued early Wednesday said that Mr. Levandowski’s pardon was supported by a number of Mr. Trump’s most prominent Silicon Valley supporters, including the investor Peter Thiel.

The full pardon is a capstone in what has been one of Silicon Valley’s most precipitous rise-and-fall stories in recent memory.

Mr. Levandowski had been one of Silicon Valley’s most prominent engineers, earning millions working on technology Google felt would remake transportation. After departing Google, he started his self-driving car company, called Otto, which he then sold to Uber for more than $600 million.

But in 2017, Google’s self-driving car company, called Waymo, sued Uber for theft of trade secrets, singling out Mr. Levandowski for having taken years of autonomous-vehicle research to strengthen Uber’s self-driving efforts. Uber later fired Mr. Levandowski and settled with Waymo.

Mr. Levandowski’s troubles did not end with the settlement. With evidence that he had downloaded thousands of files related to Google’s self-driving technology before leaving, the Justice Department filed criminal charges in 2019. Mr. Levandowski eventually pleaded guilty to one count of trade secret theft in an agreement with federal prosecutors to drop the remaining charges.

After years of legal disputes, Mr. Levandowski faced financial uncertainty. Last year, he filed for bankruptcy protection after a court ordered him to pay $179 million to Google for violating his contract.

He had been scheduled to begin serving his prison sentence after coronavirus outbreaks were under control.

Mr. Levandowski was among a batch of last-minute pardons and clemencies issued by Mr. Trump before leaving office. The list included Stephen K. Bannon, Mr. Trump’s former top political adviser who was under indictment on charges that he misused money he helped raise for a group backing the construction of a border wall; and Dwayne Michael Carter Jr., the rapper known as Lil Wayne, who was facing prison because of a weapons charge.

The White House statement announcing the pardon for the engineer said, “Mr. Levandowski has paid a significant price for his actions and plans to devote his talents to advance the public good.”

On his first day as president, Joseph R. Biden Jr. will move unilaterally to aid Americans struggling to afford housing and student loan payments amid the Covid-19 pandemic, but will not cancel large amounts of student debt as progressive activists had hoped.

The long-previewed steps are part of Mr. Biden’s pledge to take immediate executive action to help struggling Americans as the pandemic continues to disrupt everyday life.

He will extend a federal moratorium on evictions and ask agencies, including the Departments of Agriculture, Veterans Affairs, and Housing and Urban Development, to prolong a moratorium on foreclosures on federally guaranteed mortgages. Mr. Biden’s extensions would run through March.

Another planned executive order, for Americans with heavy educational debt, would continue a pause on federal student loan interest and principal payments through September.

The actions may not be enough to satisfy some Democrats and progressive groups, who urged more aggressive moves. They include Senator Chuck Schumer of New York, who will become majority leader on Wednesday and had pushed Mr. Biden to act on Day 1 to cancel up to $50,000 per person in student debt. Instead, Mr. Biden’s aides renewed his campaign call for Congress to act to cancel up to $10,000 in individual student debt.

Mr. Biden is also set to issue a flurry of orders that seek to narrow racial and gender inequalities in the economy, through actions inside and outside the federal bureaucracy.

He will direct federal agencies to conduct reviews looking to root out systemic discrimination in their policies and to reverse historic discrimination in safety-net and other federal spending, aides said. He will establish a working group examining federal data collection on diversity grounds.

And Mr. Biden will reverse several Trump administration orders that sought to undermine diversity efforts in the United States, including canceling President Trump’s 1776 Commission, which released a report on Monday that historians said distorted America’s history of slavery. Mr. Biden will also revoke an order that limited diversity training and other inclusion efforts for federal agencies and contractors.

Quincy officials are working with with developers and the Massachusetts Bay Transit Authority to rebuild the Quincy T station and spur housing, office and retail development.
Credit…M. Scott Brauer for The New York Times

For state and local governments, the pandemic has brought financial gloom: Tax collections are down, public health expenses are up and their infrastructure backlog is growing.

For developers and real estate investors, it all spells opportunity. The fiscal challenges could spur new ways for the private sector to collaborate with state and local governments.

Public-private partnerships, known as P3s, rely on developers and investors to shoulder upfront financial risk, often delaying payments from governments until revenue starts flowing or certain construction benchmarks are reached.

The partnerships have been used for projects in parts of Asia, Australia, Britain, Canada and other parts of Europe. But state and local governments in the United States have been slower to embrace them. As their fiscal woes become worse, some government officials are looking more closely at them as a tool to jump-start their economies.

Data suggests governments will need all the help they can get:

The partnerships have a mixed record, but they could be one way to bring back Main Streets and reinvigorate downtowns, experts say.

“It can be an incredible use of private markets to help further development, planning and smart growth that cities and towns need but are unable to do on their own,” said Lauren Jezienicki, the founder and chief executive of the One Circle Company, a residential real estate firm, who worked on the partnerships when she was a senior vice president at Bozzuto, a real estate developer.

Air Europa, based in Spain, was acquired by the airline conglomerate IAG for half the price that had been negotiated before the pandemic. 
Credit…Susana Vera/Reuters
  • Wall Street was poised to rise on Wednesday, following European stocks higher, on the day that Joseph R. Biden Jr. will be sworn as U.S. president. He is expected to take action later in the day to extend a number of initiatives aimed at helping Americans recover from the economic impact of the pandemic.

  • The Stoxx Europe 600 index rose 0.5 percent, led higher by Pearson, Logitech and Burberry, as the consumer and tech companies reported earnings updates that analysts praised. In Asia, the Hang Seng in Hong Kong rose 1.1 percent and the Nikkei 225 in Japan fell 0.3 percent.

  • S&P 500 futures pointed to a 0.3 percent rise when trading begins on Wall Street.

  • After the inauguration ceremonies, Mr. Biden will sign a flurry of executive orders including ones to extend moratoriums on evictions and foreclosures, and continue a pause on federal student loan interest and principal payments.

  • On Tuesday, Janet Yellen, Mr. Biden’s nominee for Treasury secretary, reiterated the new administration’s plans for a large fiscal stimulus package during her confirmation hearing in the Senate. The plans received some criticism from Republican lawmakers over concerns about increasing the federal budget deficit, a possible sign of legislative battles to come. “Without further action, we risk a longer, more painful recession now and long-term scarring of the economy later,” Ms. Yellen said.

  • The transition on Wednesday in Washington was not expected to shake up Wall Street.

  • “We move from Janet Yellen’s confirmation hearing to the new president’s inauguration, which is likely to see more pomp and ceremony and less cause for markets to move,” Kit Juckes, a strategist at Société Générale, wrote in a note to clients.

  • Netflix shares rose 12 percent in premarket trading after the streaming service said on Tuesday that it had more than 200 million customers and no longer needed to borrow money for its day-to-day operations. In under a decade, it had amounted about $16 billion in debt.

  • IAG shares rose as much as 2.5 percent in early trading after the airline group, which owns British Airways and Iberia, said that it would buy Spain-based Air Europa for 500 million euros ($606 million). That is half of the price that was agreed in late 2019 before the pandemic.

  • Oil prices were higher, with futures of West Texas Intermediate up 1.3 percent to $53.69 a barrel as the U.S. dollar was slightly weaker for a third-consecutive day.

The revived Paycheck Protection Program is off to a smoother — and slower — start than it had last spring, when desperate borrowers deluged banks with loan applications and overwhelmed the government’s computer systems.

The program opened broadly on Tuesday as the Small Business Administration, which manages the relief program, began accepting applications from all lenders. The agency allowed a small subset of community lenders and tiny banks to start submitting their applications last week.

In the program’s first week, the agency approved around 60,000 applications from nearly 3,000 lenders, the it said on Tuesday. Those applications totaled $5 billion, consuming around 2 percent of the $284 billion the program has available to lend.

Those figures do not include loan applications sent to the agency on Tuesday, the first day most lenders were allowed to send in loan requests. New fraud checks and other safeguards mean that most applications will now take at least a day to gain approval.

The program is open to both first-time borrowers and to some returning ones: The hardest-hit small businesses, those with a drop in sales of at least 25 percent since the pandemic took hold, are eligible for a second loan.

Lenders said they were preparing for significant demand, especially for second-round loans. John Asbury, the chief executive of Atlantic Union Bank, in Richmond, Va., said he expected that at least 60 percent of his bank’s 11,000 borrowers would return for another loan.

Officials from the Treasury Department have said they anticipate that the program’s funding will be sufficient to fulfill all requests. Mr. Asbury hopes that’s true.

“We simply don’t know how much of a rush we’re going to get,” he said. “We’re getting a lot of calls.”

Mike Lindell, the chief executive of MyPillow, with President Trump at a White House briefing in March.
Credit…Al Drago for The New York Times

Bed Bath & Beyond and Kohl’s said they were dropping products from MyPillow amid a backlash to comments made by Mike Lindell, the bedding company’s chief executive, who has been promoting debunked conspiracy theories involving the election on social media.

Mr. Lindell said that Kohl’s and Bed Bath & Beyond acted after people on social media started pressuring them, according to an interview posted Monday on a pro-Trump site called Right Side Broadcasting Network. Mr. Lindell, who said that he had spoken with Bed Bath & Beyond minutes before the interview, claimed without citing evidence that the criticism was coming from fake accounts.

Bed Bath & Beyond said on Tuesday that its decision was rooted in MyPillow’s performance. “We have been rationalizing our assortment to discontinue a number of underperforming items and brands,” a representative said in a statement. A spokeswoman for Kohl’s said that “there has been decreased customer demand for MyPillow,” and that the chain did not plan to buy future inventory after clearing out its supply.

Mr. Lindell, whose company is a major advertiser on Fox News, has become a prominent supporter of President Trump. He drew a wave of attention last week after a photograph of partially visible notes he was carrying into the White House showed a mention of the Insurrection Act. MyPillow also offered a “FightforTrump” discount code on the day of the Capitol riots. On social media, groups like Sleeping Giants, which was created to choke off advertising dollars to Breitbart News, have been asking vendors about their support for MyPillow products.

Mr. Lindell railed against Sleeping Giants in the interview.

“These guys don’t understand, they’re scared,” Mr. Lindell said of Bed Bath & Beyond and Kohl’s. “They were good partners. In fact, I told them, you guys come back any time you want.”

Janet Yellen appears before the Senate Finance Committee on Tuesday. 
Credit…Anna Moneymaker for The New York Times

Republicans foreshadowed their opposition to President-elect Joseph R. Biden Jr.’s economic plans on Tuesday, pressing Janet L. Yellen, his nominee for Treasury secretary, to defend a $1.9 trillion stimulus proposal that would provide more direct payments to individuals, expanded jobless benefits and money for states and cities.

The opposition from Republicans on the Senate Finance Committee during Ms. Yellen’s confirmation hearing underscored the challenge that the incoming Biden administration will face in trying to push its proposal through Congress given the narrow control it has in the Senate and House.

“We’re looking at another spending blowout,” said Senator Patrick J. Toomey, Republican of Pennsylvania. “The only organizing principle I can understand, it seems, is to spend as much money as possible, seemingly for the sake of spending it.”

Mr. Toomey took issue with Mr. Biden’s plans to send more money to states and cities, a measure that Republicans have opposed for the last year and that was dropped from the last round of stimulus talks in order to win passage of the $900 billion aid package. He also expressed concern about Mr. Biden’s proposed tax increases and his call for raising the minimum wage to $15.

Senator Tim Scott, Republican of South Carolina, seized on Mr. Biden’s call to raise the minimum wage from $7.25, arguing to Ms. Yellen that doing so would hurt small businesses while they are vulnerable and would lead to more job losses.

Other Republicans complained that the Biden economic plan is fiscally irresponsible given the nation’s growing debt load and the federal budget deficit, which topped $3 trillion last year. Senator Bill Cassidy, Republican of Louisiana, said that Mr. Biden’s plan is not sufficiently targeted and that giving an additional $1,400 in direct payments to some people who have not lost jobs is not an efficient use of federal resources.

Ms. Yellen rebutted their arguments point by point, making the case that doing too little to stimulate the economy would be more costly in the long run. She said that economic research have shown minimal job losses from raising the minimum wage, pointing to studies of neighboring states when one imposes an increase and the other does not.

She also argued that jobless benefits, which under Mr. Biden’s plan would be supplemented with an extra $400 per week, are not sufficient to address the financial struggles facing families and that the $1,400 stimulus checks are important in situations where one person, generally a woman, has left a job to care for children who are out of school.

“There are many families that are bearing exceptional financial burdens that are not addressed by unemployment compensation,” she said.

Ms. Yellen did offer some assurances to Republicans who are fearful that Democrats will repeal the entire 2017 tax law, which slashed taxes for individuals and corporations. She said that while Mr. Biden does want to make changes to the law, including raising the corporate tax rate, such actions are not an immediate priority.

“The focus right now is on providing relief and on helping families keep a roof over their heads and food on the table, and not on raising taxes,” she said.

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