Coinbase, the cryptocurrency exchange, said on Tuesday that its quarterly revenue soared by more than 1,000 percent and profits skyrocketed nearly 4,900 percent from a year earlier, in its second earnings report as a publicly traded company.
Revenue totaled $2.2 billion in the three months ending in June, up from $186 million a year ago. Profit was $1.6 billion, compared with $32 million a year earlier.
Coinbase went public in April, around the time the price of a single Bitcoin topped a record $60,000. The digital currency has since slumped and now hovers at around $45,337. In its earnings report, Coinbase warned of volatility and said it expected trades, its main source of revenue, to fall in the coming months.
Coinbase’s listing served as a validating moment for cryptocurrencies, which have often been dismissed as a tool for criminals and speculators. But the company, which trades on the Nasdaq stock exchange and is valued at $70 billion, has shown that a large, profitable and legal business can be built to service the growing groups of people who want to use the digital currencies.
Alongside Coinbase’s public listing, the run-up in the price of Bitcoin and other cryptocurrencies sparked a wave of mainstream interest in the digital assets. Tesla and Square have bought a stockpile of the tokens. Wall Street banks have expanded their crypto offerings. El Salvador has even said it will accept Bitcoin as legal tender.
That also has prompted more regulatory scrutiny. China has cracked down on cryptocurrency mining operations. U.S. regulators are investigating ways to tax and control the assets. This week, the Senate approved an infrastructure spending bill that included new taxes for digital assets, which industry leaders opposed for being too vague and broad.
In a letter to shareholders, Coinbase cited data that said 13 percent of Americans have traded cryptocurrencies in the last year, compared with 24 percent who have traded stocks. “These adoption trends paired with recent government attention on crypto as a revenue source suggests we have reached an inflection point,” the company said. “Crypto has arrived.”
CNN went into red-alert mode on Tuesday to cover the stunning resignation of Gov. Andrew M. Cuomo of New York, carrying his remarks live and patching in Empire State political veterans by phone.
A different Cuomo was glaringly absent: Chris Cuomo, the governor’s brother and CNN’s top-rated anchor, whose family link to a national scandal has proved increasingly tricky for the cable network to navigate. He is off this week on what he described as a planned vacation for his birthday.
Chris Cuomo has regularly spoken with Governor Cuomo by telephone over the past week and advised his brother to resign, said two people who requested anonymity to describe sensitive private conversations.
The anchor concluded last week that his brother could not survive the political maelstrom, as the governor’s longtime allies abandoned him and support in the Democratic establishment dwindled, the people said.
CNN has barred Chris Cuomo from engaging in strategy sessions with the governor’s aides, but the network has said it would not prohibit him from speaking directly with his brother about the scandal.
That distinction is unlikely to placate critics who say CNN erred in allowing Chris Cuomo to keep broadcasting his 9 p.m. news and commentary program while his brother became the focus of a harassment scandal. It was a difficult situation for the network and its president, Jeff Zucker, who had criticized Fox News when its prime-time hosts were enmeshed in former President Donald J. Trump’s administration and campaign.
“Cuomo Prime Time” also helped burnish Andrew Cuomo’s national reputation last year. The governor repeatedly appeared on the program to discuss his response to the nascent pandemic, and his intimate, lengthy on-air conversations with Chris Cuomo, who had fallen ill with the coronavirus, riveted viewers.
In May, Chris Cuomo apologized to viewers after it emerged that he had counseled his brother’s aides on how to respond to the sexual misconduct accusations, but the anchor said his loyalty resided with “family first, job second.” At the time, CNN called his actions “inappropriate,” but it did not discipline him.
The New York Times reported last week that CNN executives had also offered a temporary leave to Chris Cuomo if he wanted to formally advise his brother, with a promise that he could return to his show. He declined to take a leave. CNN declined to comment on Tuesday beyond its past statements about its anchor.
On Tuesday, CNN’s afternoon shows covered Andrew Cuomo’s resignation, with the anchor John King telling viewers, “You’ve been watching, simply, blockbuster news.” Fox News, whose commentators have long derided the governor, included segments about Chris Cuomo’s awkward role at CNN in its coverage of the resignation.
But Chris Cuomo has received some sympathy from one Fox News host. On his Monday show, Tucker Carlson said he would not criticize the CNN anchor for wanting to help his brother in a crisis.
“It’s understandable,” Mr. Carlson said. “It’s his brother. Your loyalty should be to your family above all else.”
The Biden administration said on Tuesday that it had reached an agreement with a group of auto parts factories in Mexico to address accusations of labor violations. The case posed an early test of the labor protections in the new North American trade deal.
Three months ago, the A.F.L.-C.I.O. and other groups filed a complaint with the administration alleging labor violations at the Tridonex auto parts factories in Matamoros, across the border from Brownsville, Texas. The A.F.L.-C.I.O. said workers had been harassed and fired for seeking to organize with an independent union in place of a company-controlled union.
Under the deal, Tridonex agreed to provide more than $600,000 in severance and back pay to workers who had been dismissed. It also agreed to a number of steps to help ensure workers’ collective-bargaining rights.
The complaint about the Tridonex factories was brought under a novel “rapid response” mechanism in the United States-Mexico-Canada Agreement, known as the U.S.M.C.A., that allows for complaints to be brought against individual factories if workers are being denied their rights to free association and collective bargaining.
In June, the Biden administration asked Mexico to review whether labor violations were occurring at the Tridonex factories. Another case under the mechanism this year involved reported labor violations at a General Motors facility in Mexico.
“Workers at home and abroad deserve the right to collectively bargain for a fair wage and decent working conditions without the fear of retaliation,” the United States trade representative, Katherine Tai, said in a statement on Tuesday. She said the agreement with Tridonex showed “our determination to leverage the U.S.M.C.A.’s innovative enforcement tools to address longstanding labor issues.”
Mike Carr, the chief executive of Cardone Industries, Tridonex’s parent company, which is based in Philadelphia, said in a statement, “We are pleased to conclusively resolve this U.S.M.C.A. petition and to collaborate with the Mexican and U.S. governments on our voluntary action plan.”
Cardone did not admit being at fault and does not believe that workers’ rights were denied at the Tridonex factories, it said in a news release about the agreement.
Dominion Voting Systems, an election technology company that became a target of a baseless pro-Trump conspiracy theory about rigged voting machines, sued the right-wing television networks Newsmax and One America News on Tuesday, accusing them of defamation.
Dominion, which also sued Fox News this year, argued in the filings that both channels served as platforms for flagrant falsehoods that devastated its reputation.
“The defendants named show no remorse, nor any sign they intend to stop spreading disinformation,” Dominion’s chief executive, John Poulos, said in a statement. “We have no choice but to seek to hold those responsible to account.”
Dominion is seeking $1.6 billion in damages from each network. The company also sued Patrick Byrne, the former chief executive of Overstock.com, who has publicly accused Dominion of rigging votes to ensure that President Donald J. Trump would not be re-elected. Mr. Byrne also falsely portrayed Dominion as linked to Hugo Chávez, the long-dead Venezuelan president.
Dominion had previously sued Mr. Trump’s lawyers Rudolph Giuliani and Sidney Powell for defamation, along with Mike Lindell, the chief executive of MyPillow and another Trump partisan who has relentlessly spread conspiracy theories about the 2020 election. Fox News has filed a motion to dismiss the Dominion suit.
Newsmax, which is owned by Christopher Ruddy, a Trump confidant, responded in a statement on Tuesday: “Newsmax simply reported on allegations made by well-known public figures, including the president, his advisers and members of Congress. Dominion’s action today is a clear attempt to squelch such reporting and undermine a free press.”
Representatives for One America News did not immediately respond to a request for comment.
Hardly a day goes by without a big bank announcing a significant rise in starting salaries for its youngest employees. JPMorgan Chase, Citigroup, UBS and Morgan Stanley are now paying first-year bankers $100,000, while Evercore, Jefferies and Goldman Sachs will pay $110,000. In most cases, base salaries for first-year analysts were previously $85,000 to $95,000.
The pay is rising as the heavy workloads caused by high deal flow have led to complaints about burnout in the junior ranks. A notoriously grueling job has become even more challenging during the pandemic, junior bankers say, given the lack of camaraderie and networking when working in isolation from home. The surge in coronavirus cases as a result of the Delta variant has made return-to-office plans less certain, complicating many banks’ aggressive push to bring people back in the office, in part for the sake of morale.
More money could help attract and retain junior bankers, but now that most of the major players have landed at about the same rate, it isn’t necessarily a competitive advantage. Flexible working schedules for those back at the office, Zoom-free Fridays and other nonmonetary perks could help. More immediately, the DealBook newsletter notes, it’s worth watching to see if pandemic precautions at the office become a differentiator in Wall Street’s war for talent.
The boutique bank Jefferies said on Monday that it would mandate vaccines for those returning to the office, a decision made partly in response to the Delta variant. The bank’s executives said in a letter last month that while “the vast preponderance” of workers at the bank were vaccinated, it recorded 40 new cases of Covid, mostly mild but including two “short hospitalizations.”
Morgan Stanley also has a vaccine mandate for staff and visitors to its New York offices, while other banks, like Goldman Sachs, require employees to log their vaccination status before going to the office but don’t mandate vaccination. Bank of America has said it was focused on bringing back vaccinated employees first to corporate headquarters next month.
It’s a different calculation for the biggest banks, with universal policies hard to impose on operations across the country, from Wall Street offices to Middle America retail branches. As some banks, like Wells Fargo, have recently delayed their planned office returns, JPMorgan announced that it was only reinstating mask requirements for all U.S. employees, many of whom are back in offices on rotations. But a memo to staff from the bank’s operating committee flagged a potential change to its workplace policy down the road: “We deeply appreciate your efforts and will continue with our previously stated return to the office schedule as we learn more about how hybrid working may work for our company.”
Lananh Nguyen contributed reporting.
TOKYO — SoftBank, the Japanese conglomerate that has become a major investor in the technology space, on Tuesday reported a profit of 762 billion yen, or $6.9 billion, for the three months that ended on June 30.
That would be an impressive number for just about any company. But SoftBank could face uncertainty ahead, as technology investors focused on Chinese internet firms absorb the impact of Beijing’s tightening regulatory grip.
By the numbers, SoftBank’s profit was a nearly 40 percent drop from a year earlier. That year-ago period, however, included a nearly $6.7 billion gain from the loss of its control of Sprint, the American telecom that the Japanese firm sold to T-Mobile last year.
In SoftBank’s most prominent businesses these days — investing in other companies — it reported more than $11 billion in gains, compared with $8.9 billion a year earlier. SoftBank’s Vision Fund, the investment vehicle it controls, has become a technology heavyweight, strengthening the company’s bottom line.
This spring, SoftBank announced the highest annual earnings in history for a Japanese-listed company: more than $46 billion for the year that ended in March.
But with SoftBank’s successes have come a string of failures, particularly in 2019 with the spectacular implosion of the work space start-up WeWork, which cost the company billions of dollars and tarnished the reputation of its founder and impresario, Masayoshi Son.
In 2019, SoftBank began a second iteration of its Vision Fund with tens of billions of dollars of its own money after the WeWork debacle scared off other potential investors.
Last year, under pressure from outside investors, the company began a $23 billion stock buyback program, financed partly with loans against its holdings in the Chinese e-commerce giant Alibaba.
The purchases helped send its stock price to record levels. But it didn’t last: The company’s shares have fallen more than 35 percent since peaking in March.
In recent months, SoftBank’s shares have come under new pressure from investors worried about its exposure to Chinese tech companies that are facing tougher regulatory scrutiny at home. Chinese regulators have tightened their grip on an industry that flourished under light regulation in previous years. In April, regulators fined Alibaba $2.8 billion.
SoftBank said on Tuesday that it had lost nearly $1 billion from financial derivatives backed by Alibaba shares. It could take another hit in the next quarter from its investments in the Chinese logistics firm Full Truck Alliance and the Chinese ride-hailing giant Didi, whose shares have dropped after it came under its own scrutiny from Beijing. SoftBank has around 50 percent of its asset tied up in Chinese firms, with 41 percent in Alibaba alone.
In an earnings conference, Mr. Son, who described himself as a risk-taker, implied that even he had limits. The company, he said, is slowing the pace of its investments in China as it waits to see how the regulatory situation shakes out.
“That’s something that we would like to be careful about and be cautious,” he said. “Once we have a bit better view, then we would like to resume the investments.”
Asked about a possible share buyback, Mr. Son said that the company had no current plans, but that given the recent decline in its stock price, it was something that warranted consideration. The question, he said, is not if but “‘How big and when?’”
“That’s something that we are studying every day,” he added.
Google says it plans additional privacy measures to protect teenage users on YouTube and its search engine, becoming the latest technology giant to adopt tougher standards in the face of criticism that companies are not doing enough to protect children.
In a blog post on Tuesday, Google announced that videos uploaded to YouTube by users 13 to 17 years old would be private by default, allowing the content to be seen only by the users and people they designate.
Google also will start to allow anyone under 18 years old, or a parent or guardian, to request the removal of that minor’s images from Google Image search results, the company said. It is unclear whether this process will be easy and responsive, considering Google’s historical reluctance to remove items from search results.
In addition, Google said it would turn off location history for all users younger than 18 and eliminate the option for them to turn it back on.
The company plans to roll out the changes in the “coming weeks,” it said.
There is growing bipartisan support in Washington to press technology companies to do more to protect children. In the last few months, two pieces of legislation, one in the House and one in the Senate, seek to update the Children’s Online Privacy Protection Act. The 1998 law, known as COPPA, restricts the tracking and targeting of children under 13 years old, and the bills would extend those protections to teenagers.
Google has repeatedly faced scrutiny over its handling of data related to children. In 2019, it agreed to pay a $170 million fine for violating COPPA by collecting children’s data without parental consent.
Both Facebook and Google said they were limiting the ability of marketers to target teenagers with advertising, but in slightly different ways. Facebook said advertisers would be able to target people under 18 based only on their age, gender and location — and not on their interests or their activity on other apps and websites.
Google said it would block personalized ads that were based on age, gender or interests to people under 18. It will still allow ads based on context, such as a person’s search requests.
Leisure travel roared back this summer, but the airline and hotel industries long depended on business travel for a substantial portion of their revenue because those customers, who often made their plans at the last minute, could be counted on to pay more for seats and rooms. Now that the pandemic has upended the notion that travel is necessary to do business, the question is how much it will resume, even when the coronavirus is brought under control.
And now the spread of the Delta variant of the virus is throwing a yet another wrench into businesses’ plans, Jane L. Levere writes in The New York Times. A pressing question is whether the jump in cases will be brief or more long-lived.
Even the experts who were most optimistic about the prospects for business travel a month or so ago have begun to temper their forecasts. The quick change was captured by a survey of 1,200 American travelers that Destination Analysts, a market research firm in San Francisco, conducted from July 21 to 23. Among business travelers, it found, nearly 25 percent expected the “coronavirus situation” to worsen in the next month, a jump from under 14 percent two weeks earlier.
The U.S. Travel Association said in late July that it continued to forecast “a modest return of business travel over the coming months, so the increase in cases has not materially affected our view.” It said it now expected that business travel would “only achieve 50 percent of 2019 levels in the fourth quarter of 2021.”
Travel experts nevertheless remain optimistic that business travel will pick up substantially later this year and early in 2022. Or as Christopher J. Nassetta, the president and chief executive of Hilton, put it on an earnings call last month, “People have to meet.”
Scott Graf, global president of BCD Meetings & Events, said that in light of the spread of the Delta variant, “we’ll likely see some cancellations or certainly meetings being pushed out by weeks or months.”
“I may be optimistic,” he added, “but it is my hope that vaccination progress will increase dramatically over the next 60 to 90 days and that the fourth quarter and early 2022 will still be quite strong.”
As some workplaces have begun determining how to safely bring employees back to the office, the choice of getting a coronavirus vaccine is becoming increasingly public, Sydney Ember and Coral Murphy Marcos report in The New York Times.
The vaccines have been shown to be vigorously effective against severe illness and death after infection, including the highly contagious Delta variant, and public health officials, doctors and political leaders are urging inoculation. The Kaiser Family Foundation reported in late July that more than 90 percent of Covid-19 cases, hospitalizations and deaths have occurred among people who are unvaccinated or not yet fully vaccinated.
“The more people who are out there without the vaccine, the more Covid will spread,” said Luisa Borrell, distinguished professor at the CUNY Graduate School of Public Health & Health Policy.
A growing number of companies are mandating vaccines as a condition of employment, leaving unvaccinated workers at risk of being fired. CNN, which has required full vaccinations for all employees working in its offices and in the field, said on Thursday that it had fired three people who went into the office unvaccinated. Many others are adopting less sweeping — but perhaps more conspicuous — approaches, including mask mandates for unvaccinated workers or the requirement that they work remotely.
Tension between the vaccinated and the unvaccinated has simmered since the shots became more widely available in the spring. But with the virus’s resurgence has come mounting frustration among vaccinated Americans toward the unvaccinated, making some unvaccinated workers especially circumspect about revealing themselves.
The Senate on Tuesday passed a sweeping $1 trillion bipartisan infrastructure package, capping weeks of intense negotiations and debate over the largest federal investment in the nation’s aging public works system in more than a decade.
The final tally was 69 to 30, and Vice President Kamala Harris gaveled the vote closed.
The legislation, which still must pass the House, would touch nearly every facet of the American economy and fortify the nation’s response to the warming of the planet.
It would greatly increase funding to modernize the nation’s power grid and finance projects to better manage climate risks, and it would devote hundreds of billions of dollars to repair and replace aging public works projects. The legislation was largely negotiated by a group of 10 Senate Republicans and Democrats and White House officials.
After the vote, President Biden celebrated the news in remarks at the White House, where he thanked Democrats and Republicans for pushing through the package.
“They said they’re willing to work in a bipartisan manner and I want to thank them for keeping their word, that’s just what they did,” Mr. Biden said. “After years and years of infrastructure week, we’re on the cusp of an infrastructure decade.”
“America, this is how we truly build back better,” he added. “This bill is going to put people to work, modernizing our roads and our highways and our bridges.”
Ahead of the final passage, at least three Republicans who had been tangentially involved with negotiations of the bill announced their opposition. One, Senator Mike Rounds of South Dakota, was absent for the vote, but he registered his concerns early Tuesday.
Yet despite criticism from former President Donald J. Trump, many Republicans, including Senator Mitch McConnell of Kentucky, the minority leader, embraced federal aid for their states.
Mr. Trump, who blew up infrastructure talks during his administration, issued another missive early Tuesday, declaring Mr. McConnell “the most overrated man in politics,” in part for allowing the bill to advance.
Democrats immediately after took up a $3.5 trillion budget blueprint that will unlock their ability to muscle through an expansive social policy package over unanimous Republican objections.
Under the fast-track budget reconciliation process, that blueprint, if passed with a simple majority, will dictate the parameters of a transformative package expected to provide funding for health care, climate change, education and child care, and to increase taxes on wealthy people and corporations.
The budget can pass, however, only after a marathon of rapid-fire votes, known as a vote-a-rama, that is expected to stretch at least through midnight Wednesday. Mr. McConnell, speaking on the Senate floor Tuesday, said hundreds of amendments had been prepared, centered on national security funding, federal funding for abortions, tax increases and immigration.
“Republicans do not currently have the votes to spare American families this nightmare,” Mr. McConnell said. “But we will debate. We will vote. We will stand up and be counted, and the people of this country will know exactly which senators fought for them.”
The House, which had been scheduled to remain out of Washington through mid-September, changed course Tuesday evening, with House Democratic leaders announcing the chamber would return the week of Aug. 23 to consider the budget blueprint after its expected passage in the Senate.
The S&P 500 rose 0.1 percent on Tuesday, while the Nasdaq composite fell half a percent.
West Texas Intermediate, the U.S. crude benchmark, rose nearly 3 percent. Oil prices had dropped Monday amid concerns that the Delta variant could threaten the global economic recovery as China, the world’s second-largest economy, imposed new restrictions to try to contain its worst outbreak in more than a year.
The Stoxx 600 Europe gained 0.4 percent, while Asian markets closed mostly higher.
After climbing early in the day, AMC Entertainment’s stock fell 6 percent. The company’s financial performance for the three months ending in June was better than analysts expected, even as it still lost money in the quarter. The company’s revenue is still down 70 percent from the same period in 2019.
The company, which was on the verge of bankruptcy earlier this year, has embraced its status as a meme stock — the label for a group of wildly volatile stocks that have become favorites of small traders who have pushed up prices.
PepsiCo and Boston Beer Company, the maker of Sam Adams, are planning to start making Hard Mtn Dew, a sugarless, caffeine-free malt drink with 5 percent alcohol content, Boston Beer Company said on Tuesday. The release from the companies included images showing watermelon, black cherry and classic Mountain Dew flavors.
The new drink line is the latest effort by the companies to expand beyond beer and soda as sales of those products level off or shrink. Boston Beer, which also owns the Dogfish Head beer brand, has been adding nonbeer drinks including Twisted Tea, Angry Orchard cider and, most recently, Truly Iced Tea Hard Seltzer. PepsiCo has made big bets on nonalcoholic seltzer by introducing Bubly and buying SodaStream for $3.2 billion.
Boeing said Tuesday that it gained orders for 14 planes in July after accounting for cancellations, representing its sixth consecutive month of net sales. The company has benefited from a strong recovery of air travel within the United States, though sales have been uneven in the rest of the world. Boeing delivered 28 planes to customers last month and its order backlog now stands at 4,141.
Twitter on Tuesday suspended Representative Marjorie Taylor Greene, Republican of Georgia, from its service for seven days after she posted that the Food and Drug Administration should not approve the coronavirus vaccines and that the vaccines were “failing.” The company said that this was Ms. Greene’s fourth “strike,” which means that under the company’s rules she could be permanently barred if she violated Twitter’s coronavirus misinformation policy again.
Today in the On Tech newsletter, Shira Ovide writes that climate change and other big problems won’t be solved by tech alone.
“I worry that when we vilify or glorify what technology and tech companies do, it makes us lose focus on what’s actually important,” she writes.