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Apollo CEO Leon Black to Step Down Following Review of Jeffrey Epstein Ties

Leon Black plans to step down as chief executive of Apollo Global Management Inc. after an independent review revealed larger-than-expected payments to disgraced financier Jeffrey Epstein that it nevertheless deemed justified.

The monthslong review by Dechert LLP found no evidence that Mr. Black was involved in the criminal activities of the late Epstein, who was indicted in 2019 on federal sex-trafficking charges involving underage girls, according to a copy of the law firm’s report that was viewed by The Wall Street Journal.

In its report, Dechert found the fees that the billionaire had paid Epstein were for legitimate advice on trust- and estate-tax planning that proved to be of significant value to Mr. Black and his family. Mr. Black paid Epstein a total of $148 million, plus a $10 million donation to his charity—far more than was previously known.

Mr. Black wrote in a letter to Apollo’s fund investors that he would cede the role of CEO to co-founder Marc Rowan on or before his 70th birthday on July 31 while retaining the role of chairman. In the letter, a copy of which was viewed by the Journal, Mr. Black detailed other governance changes he is recommending to the board, including the appointment of more independent directors and the elimination of Apollo’s dual-class share structure.

Mr. Black also pledged to donate $200 million of his family’s money to women’s initiatives.

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British Economy, Post Brexit and Pummeled by Covid, Is Worst in G-7

The U.K.’s economy shrank more last year than any of the G-7, in what the Bank of England says will be the country’s biggest economic slump in more than 300 years.

What went wrong? Shutdowns caused greater pain for the U.K. than other members of the Group of Seven advanced economies in part because it is especially dependent on consumer spending, which evaporated amid one of Europe’s deadliest Covid-19 outbreaks. The economy was already weak after the four years of negotiations over Britain’s exit from the European Union, during which business investment sagged and households held back on spending.

This is the starting point for Britain’s new relationship with the EU, which began Jan. 1 with a loose free-trade agreement. Earlier this month, Prime Minister Boris Johnson announced another nationwide lockdown to fight a new, more-contagious variant of the coronavirus. That puts the U.K. economy on course to shrink again in the first quarter of the year, when businesses must also get to grips with new European trading arrangements.

Growth in the U.K. was already weak going into the pandemic because of feeble business investment, poor productivity and scant growth in incomes. Once the coronavirus set in, the British economy shrank by more than its peers in the G-7 in the first nine months of the year. Figures for the final quarter, due Feb. 12, are expected to show the economy contracted again.

The U.K. took a bigger hit because around 13% of its annual gross domestic product comes from spending on recreation and culture and in restaurants and hotels, a higher share than any other G-7 country. Businesses that depend on direct contact with consumers—bars and restaurants, sports events, hotels and theaters, cinemas and museums—were hobbled when social distancing became the norm and when the spread of the virus forced them to close. The current lockdown, in place through mid-February, closes schools and nonessential shops, and people have been told to leave home only if necessary.

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World’s Ice Is Melting Faster Than Ever, Climate Scientists Say

From Antarctica to the Arctic, the world’s ice is melting faster than ever, according to a new global satellite survey that calculated the amount of ice lost from a generation of rising temperatures.

Between 1994 and 2017, the Earth lost 28 trillion metric tons of ice, the survey showed. That is an amount roughly equivalent to a sheet of ice 100 meters thick covering the state of Michigan or the entire U.K.—and the meltwater from so much ice loss has raised the sea level just over an inch or so world-wide, the scientists said.

“It’s such a huge amount it’s hard to imagine it,” said

Thomas Slater,

a research fellow at the U.K.’s University of Leeds Centre for Polar Observation and Modelling and the lead author of a paper describing the new research. “Ice plays a crucial role in regulating the global climate, and losses will increase the frequency of extreme weather events such as flooding, fires, storm surges and heat waves.”

The paper was published Monday in the European Geophysical Union’s journal the Cryosphere.




Adding up the loss from glaciers, ice shelves, polar ice caps and sea ice, Dr. Slater and his colleagues determined that the rate of global melting has accelerated 65% since the 1990s.

The ice loss has grown from 0.8 trillion tons a year to 1.3 trillion tons a year, driven by rising atmospheric and ocean temperatures resulting from greenhouse gas emissions, the scientists said. Slightly more than half the ice loss occurred in the Northern Hemisphere.

Dr. Slater and a team of eight other scientists from the University of Edinburgh, University College London and a Edinburgh-based climate data company called Earth Wave Ltd. based their findings on 50 studies of ice loss, field measurements and data from 17 satellite missions.

The researchers employed a variety of techniques to reach their conclusions. These included the use of satellite altimeters and gravity sensors to measure the volume and mass of ice on the ground below. They also used satellite imagery of ice shelves and glaciers to detect changes over the years.

“It’s a reminder that dangerous climate change is already here, in this case in the form of melting ice, rising sea level and the inundation of our coastlines,” said

Michael Mann,

a Pennsylvania State University climatologist and author of “The New Climate War.” He wasn’t involved in the research.

The new research comes as the U.S. moved last week to rejoin the Paris Agreement, an international climate accord designed to limit greenhouse-gas emissions by 2050 and keep the rise in global temperature to no more than 3.6 degrees Fahrenheit (2 degrees Celsius), compared with preindustrial levels.

Former President

Trump

officially withdrew from the accord last year after vowing to do so for several years.

The average global temperature has risen about 2 degrees Fahrenheit since the 1880s, when systematic record-keeping began, according to the National Aeronautics and Space Administration.

Last week, NASA and the European Union’s Copernicus Climate Change Service announced that Earth’s average global surface temperature in 2020 tied 2016 as the warmest year on record.

Independent studies by the National Oceanic and Atmospheric Administration and a private climate-analysis group called Berkeley Earth found that 2020 was slightly colder than 2016 but warmer than every other year since 1850.

All told, the past seven years have been the warmest in the modern record, according to NASA.

“It’s important that we keep up with the big picture for ice because the story there is very dramatic, despite the possibility that one glacier here or there might be doing something different,” said climate scientist

Gavin Schmidt,

director of the NASA Goddard Institute for Space Studies in New York.

Write to Robert Lee Hotz at sciencejournal@wsj.com

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China’s Love of TikTok-Style Apps Powers $5 Billion IPO

Kuaishou Technology has its eyes on the world’s biggest initial public offering in more than a year, seeking to raise about $5 billion from a Hong Kong share sale as short-video and live-streaming apps surge in popularity in China.

Kuaishou—which competes with ByteDance Ltd., the rival Chinese company behind TikTok and its sister app Douyin—started taking investor orders Monday. With the offering, which could value it at more than $60 billion, Kuaishou is joining a string of tech companies from China that have listed in Hong Kong.

Kuaishou, which means “fast hand” in Chinese, is backed by Tencent Holdings Ltd. It was co-founded by Su Hua and Cheng Yixiao, software engineers who previously worked for Google China and Hewlett Packard , respectively.

Both Kuaishou and ByteDance have capitalized on growing demand from younger Chinese people to watch and record short videos on their smartphones. Its namesake short-video platform is the world’s second-largest, according to data cited in its prospectus, and there were 305 million average daily active users of its apps and mini-programs in China for the nine months as of September.

With a minimum deal size of $4.95 billion, the IPO would be the largest in the world since late 2019, when state-controlled Saudi Arabian Oil Co., commonly known as Aramco, raised $29.4 billion, Dealogic figures show.

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China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment

China overtook the U.S. as the world’s top destination for new foreign direct investment last year, as the Covid-19 pandemic amplifies an eastward shift in the center of gravity of the global economy.

New investments by overseas businesses into the U.S., which for decades held the No. 1 spot, fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the spread of the new coronavirus and economic output slumped.

China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely contain Covid-19 after the disease first emerged in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year.

The 2020 investment numbers underline China’s move toward the center of a global economy long dominated by the U.S.—a shift accelerated during the pandemic as China has cemented its position as the world’s factory floor and expanded its share of global trade.

While China attracted more new inflows last year, the total stock of foreign investment in the U.S. remains much larger, reflecting the decades it has spent as the most attractive location for foreign businesses looking to expand outside their home markets.

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Russia’s Putin Faces Rising Discontent Amid Alexei Navalny Protests

MOSCOW—The protests that swept Russia this weekend in support of jailed opposition leader Alexei Navalny show the challenge President Vladimir Putin faces in managing social discontent ahead of parliamentary elections this year.

Saturday’s unsanctioned rallies were among the largest in recent years and saw tens of thousands of people brave freezing temperatures, the threat of the pandemic and the possibility of incarceration. Security forces detained more than 3,500 people—the largest number in at least nine years, according to independent monitors.

The protests have left the Kremlin facing a dilemma: Either bow to the pressure from the street and undermine its own authority by releasing Mr. Navalny or risk inciting more backlash and unifying the opposition by keeping him behind bars.

“There are few good options for Putin,” said Abbas Gallyamov, a Moscow-based political consultant and former speechwriter for Mr. Putin. “It seems like Navalny is attacking and the Kremlin is defending.”

Mr. Putin’s approval ratings have swooned in recent years amid a sluggish economy and protest activity. Observers say the Navalny demonstrations, if sustained, could pose a threat to Mr. Putin’s dominance despite constitutional changes approved last year that could allow him to stay in power until 2036.

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Comcast’s NBCUniversal to Shut Down Sports Cable Channel NBCSN by Year-End

NBCUniversal is shutting down its sports cable channel NBCSN at the end of the year and migrating much of its programming to its sister general entertainment network USA, the company said.

The premium properties on NBCSN are the National Hockey League and Nascar auto racing, both of which will start to transition to USA Network this year. Some content will remain on both channels until NBCSN officially turns off the lights. NBCUniversal informed staffers of the plan Friday afternoon in a company memo.

“We’re absolutely committed more than ever to live sports as a company, and having such a huge platform like USA Network airing some of our key sports content is great for our partners, distributors, viewers and advertisers alike,” said NBC Sports Group Chairman Pete Bevacqua.

By putting high-profile sports on USA Network, NBCUniversal—a unit of Comcast Corp. —is hoping to solve two problems with one move: Get rid of an underperforming asset and boost an already powerful one. The Premier Soccer League will also have matches on USA.

NBCSN has struggled to compete against bigger rivals such as Walt Disney Co. ’s ESPN and Fox Corp.’s Fox Sports cable network. While it has a large national reach, its ratings pale in comparison to its competition. Fox Corp. and Wall Street Journal parent News Corp share common ownership.

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U.K. Covid-19 Variant Could Be More Deadly, British Officials Say

LONDON—British officials warned Friday that a coronavirus variant first identified in the U.K. might be more lethal as well as more transmissible than previous versions of the pathogen.

The conclusions of scientists advising the British government are still highly uncertain. But British Prime Minister Boris Johnson said in a televised address that the variant—which has caused Covid-19 infections across the U.K. to spike and is spreading rapidly in the U.S.—could result in higher death rates.

U.S. federal health authorities have said it is likely to become the dominant variant in the U.S. by March.

“We have been informed today that, in addition to spreading more quickly, it also now appears that there is some evidence that the new variant—the variant that was first identified in London and the South East—may be associated with a higher degree of mortality,” said Mr. Johnson.

The tentative conclusions come as British hospitals cope with more Covid-19 patients than at any time during the pandemic. The Covid-19 death toll in the U.K. is expected to pass 100,000 in the coming week.

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Studies of South African Coronavirus Strain Raise Concerns About Immune Response

JOHANNESBURG—Three new laboratory studies are raising concerns that the immune response triggered by a Covid-19 infection or vaccination may be less effective at protecting against the new strain of the coronavirus that first emerged in South Africa.

The findings come from experiments done in the laboratory and only look at certain elements of a body’s immune response. Still, they reinforce the possibility that vaccine makers and regulators will need to update Covid-19 vaccines as the virus evolves.

A fourth study, conducted by scientists at BioNTech SE and Pfizer Inc. and published by the companies, showed that their vaccine successfully neutralized a variant that was initially detected in the U.K. That study didn’t include the South African strain.

The U.K. variant has already spread to many other countries, including the U.S.

More than a year into the pandemic, the discovery of new variants that appear to have made the virus more contagious is forcing researchers to adapt their understanding of the coronavirus that causes Covid-19. One concern, researchers said, is that the new strains are emerging in countries where a significant percentage of people have already built up an immune response to earlier variants after getting Covid-19.

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