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New York Gov. Cuomo warns a January financial shutdown is feasible as Covid instances soar to springtime information

New York Gov. Cuomo warns a January economic shutdown is possible as Covid cases soar to springtime records

Andrew Cuomo, Governor of New York State, speaks at a press conference in New York City on September 8, 2020.

Spencer Platt | Getty Images

New York’s non-essential stores could be forced to close again in January if the state doesn’t tackle escalating coronavirus cases that have soared in recent weeks to record highs not seen since the spring, Governor Andrew Cuomo said on Wednesday.

“Of course, a shutdown in January is possible,” said Cuomo at a press conference in Albany. “But there is a big but,” he said, spelling the word letter by letter “BUT”.

Whether the state will again impose an economic lockdown depends on what New Yorkers do in the remaining vacation and whether new Covid-19 infections decrease or increase, he said.

According to a CNBC analysis of data compiled from data from Johns Hopkins University, New York has been struggling with an average of 10,294 new infections per day for the past week, up more than 7% from the previous week. That’s more new cases every day than the state did in the spring, when the hospital systems in New York City and elsewhere were overwhelmed with patients.

Cuomo didn’t say what a second shutdown would look like. He imposed another ban on indoor dining in New York City on Monday but said he wanted to keep public schools open and has not yet made a decision on whether to close non-essential stores.

“It’s up to us. What will happen in three weeks? What will happen in four weeks? You tell me what you are going to do in the next three or four weeks and I will tell you what will happen,” he said.

At the current rate of spread of the virus, New Yorkers should be prepared for a second shutdown, similar to the one Cuomo issued this spring when unnecessary shops and schools closed and people were told to stay home to avoid the spread of Covid -19 stop, Mayor Bill de Blasio warned.

He said it was “increasingly necessary to just break the back of the second wave, to keep this second wave from growing, to prevent it from taking lives, not to threaten our hospitals,” de Blasio said during a press conference Monday .

Cuomo urged New Yorkers to take “personal responsibility” in order to slow the spread of the virus, especially during the holiday season. The state is now concerned about what the governor calls “living room sprawl”. This is because nationwide contact tracing data has shown that nearly 74% of new Covid-19 cases are from households and social gatherings.

“Nobody knows what New Yorkers will do until Christmas or how they will behave during Christmas week,” said Cuomo. “The numbers are not predestined. The numbers reflect what we are doing.”

The governor also urged that state hospitals move into “crisis management mode,” which means that health systems must work with neighboring hospital systems to “share” the burden of patients and provide resources to hospitals in areas with high Covid-19 Transfer installments.

According to a CNBC analysis of data from the Covid Tracking Project run by journalists from The Atlantic, the New York average is more than 5,400 people hospitalized, an increase of more than 25% from the previous week.

“Balance the load so hospitals aren’t overwhelmed by what we’ve seen in the past,” said Cuomo.

The state has started delivering its initial allocation of Covid-19 vaccines to frontline health workers. The state has received 87,750 doses of Pfizer’s Covid-19 vaccine so far and plans to receive an additional 80,000 doses in the next few days, Cuomo said.

“That goes for residents of nursing homes,” said Cuomo. New York could receive an additional 346,000 doses of vaccine from Moderna if the U.S. Food and Drug Administration clears the emergency for emergencies this week.

“Slow down the spread, manage the hospitals, give the vaccine,” Cuomo said.

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Financial Stimulus Deal Takes Form in Congress: Stay Market Updates

Senate Majority Leader Mitch McConnell in the U.S. Capitol in Washington Tuesday. “We committed to continuing these urgent discussions until there’s an agreement,” he said Wednesday morning. 

Here’s what you need to know:

Credit…Anna Moneymaker for The New York Times

Congressional leaders on Wednesday closed in on an agreement on a coronavirus relief measure that could infuse the economy with as much as $900 billion, as they raced to complete both a pandemic aid package and a catchall federal spending measure before government funding lapses on Friday.

The top two Republicans and Democrats on Capitol Hill appeared to be coalescing around a plan that would include both another round of direct stimulus payments to Americans and additional unemployment benefits, according to people familiar with the emerging compromise who described it on condition of anonymity.

While the details were not yet final, the plan was also expected to provide billions of dollars for vaccine distribution, schools and small businesses, but omit coronavirus liability protections long sought by Republicans and a dedicated funding stream for state and local governments insisted upon by Democrats — the two most contentious sticking points.

The contours of the deal, reported earlier by Politico, became clear after a flurry of late-night negotiations among the four leaders and their staff on Capitol Hill. With Steven Mnuchin, the Treasury secretary, joining by phone, the four met twice on Tuesday in Speaker Nancy Pelosi’s office suite in the Capitol to work out the details.

“We committed to continuing these urgent discussions until there’s an agreement,” Senator Mitch McConnell, Republican of Kentucky and the majority leader, said Wednesday morning in a speech on the Senate floor.

It was unclear how large the direct payments would be, though the $2.2 trillion stimulus law enacted in March provided $1,200 per adult, and progressives and some conservative Republicans have recently called for the same amount or more to be included in the new round of aid.

Negotiators were also still haggling over an expansion and extension of unemployment benefits and how long they would last. They were also discussing reinstituting supplemental jobless payments — which were at $600 per week when they lapsed over the summer, but would likely be revived at a smaller amount. Although Democrats appeared to have dropped their demand for a major new infusion of aid for state and local governments, some officials familiar with the discussions said privately that there were other avenues to provide some of those funds in the final package.

An agreement on both the relief measure and must-pass legislation including the dozen spending bills needed to keep the government funded beyond Friday could emerge later on Wednesday.

Shoppers at Gateway Mall in Lincoln, Neb., on Black Friday. Retail sales fell 1.1 percent in November, the Commerce Department reported.Credit…Walker Pickering for The New York Times

For the first time since spring, U.S. retail sales have declined, raising questions about the strength of consumer spending and how retailers are faring in the all-important holiday shopping season.

Retail sales fell 1.1 percent in November as spending on categories like automobiles, electronic stores, clothing and restaurants and bars softened, according to a report from the Commerce Department on Wednesday.

Economists had expected a smaller decline amid robust holiday sales, driven by online spending. But the Commerce Department also revised its tally for October to a 0.1 percent decline, from an increase of 0.3 percent reported earlier.

The U.S. economy has slowed in recent months amid a surge in coronavirus cases and a steady increase in the ranks of the unemployed. Even as businesses have come under fresh pressure, lawmakers have yet to reach an agreement on a new stimulus package.

The uncertainty around holiday spending has been exacerbated as retailers pushed annual sales events into October, in a bid to jump-start the season and prevent crowded stores and shipping delays in November. Many major chains reported sales gains in October, but they were not certain about how it would affect spending in November and December.

Black Friday, which has traditionally signaled the start of the holiday shopping season, was also largely a bust for many retailers amid the rise in cases. Some companies reported that in-person traffic that day declined by as much as 50 percent from last year, as shoppers concerned about the virus stayed away from the stores.

With the new concerns around shopping in person, retailers have been racing to accommodate a surge in shipping demand, grappling with new surcharges and delays with major carriers including UPS and FedEx.

By: Ella Koeze·Source: Refinitiv

  • A surprisingly dour report on retail sales took some of the enthusiasm out of the stock markets on Wednesday.

  • Shares in Europe and the United States had been heading for a second day of solid gains before the Commerce Department said that retail sales fell 1.1 percent in November, a far sharper decline than economists had expected and fresh evidence of the resurgent coronavirus’s impact on the world’s largest economy.

  • Instead, the S&P 500 started the day with a small decline, and shares in Europe were also off their highs of the day. The Stoxx Europe 600 index and the FTSE 100 in Britain were both about half a percent higher.

  • Before the retail sales report, markets had been bolstered by signs of progress toward an economic stimulus package in Washington, and after the latest Purchasing Managers Index report offered a positive outlook on the European economy. The manufacturing index reached 56.6 points, up from 55.3 in November, and the composite output index hit 49.8 points, from 45.3 last month.

  • “The data hint at the economy close to stabilizing after having plunged back into a severe decline in November amid renewed Covid-19 lockdown measures,” said Chris Williamson, the chief business economist at IHS Markit, which compiles the reports.

  • Further insight on the state of the U.S. economy will come later on Wednesday when the Federal Reserve chair, Jerome H. Powell, speaks to reporters after the end of the central bank’s final scheduled meeting of the year. The Fed has been offering reassurance that it will continue supporting the economy, but some policymakers are divided over how much needs to be done now.

  • U.S. lawmakers held talks late Tuesday seeking an agreement on a pandemic stimulus bill ahead of a Friday deadline. Senator Mitch McConnell, the majority leader, said afterward that “we’re making significant progress,” and Speaker Nancy Pelosi offered a similar appraisal. On the table is a package of funding to support unemployed workers and troubled businesses, as well as an omnibus spending bill to keep government money flowing.

The European Central Bank headquarters in Frankfurt, Germany. Banks can begin paying dividends again, the central bank said, but with strict limits.Credit…Daniel Roland/Agence France-Presse — Getty Images

The European Central Bank said Tuesday that it would allow banks to resume limited payouts to shareholders, an indication that regulators are slightly less worried that the pandemic will set off a financial meltdown.

Since March, the central bank has been pressuring commercial banks to stockpile cash to deal with possible losses stemming from the devastating impact on the eurozone economy caused by the pandemic.

Banks can begin paying dividends again after consulting with regulators, the European Central Bank said in a statement on Tuesday, but it set strict limits on how much they can pay out as a percentage of profit and capital. The limits will remain in effect until at least the end of September 2021.

Still, the end of the dividend moratorium, which was technically a recommendation, is a sign that the banking system and the eurozone economy are inching toward normalcy.

“In revising its recommendation, the E.C.B. acknowledges the reduced uncertainty in macroeconomic projections,” the central bank said. An analysis earlier this year “confirmed the resilience of the European banking sector,” it said.

The economic crisis has forced most banks to set aside large sums to cover losses from borrowers who lost their jobs and businesses that suffered severe declines in sales. But there have been no major bank failures as a result of the pandemic, in part because regulators have forced lenders to stockpile capital in recent years and take less risk.

The central bank said that lenders should discuss dividend payments with regulators beforehand, and it cautioned banks to exercise “extreme moderation” in bonuses and other payouts to executives.

The European Central Bank is responsible for supervising banks in the eurozone that are considered big enough or important enough to set off a financial crisis. The bank said Tuesday that national regulators should apply the same standards to the smaller banks under their purview.

Philadelphia is a case study in the simple-but-not-easy task of helping tenants with the rent. Like most places, it isn’t close to satisfying the need.Credit…Hannah Yoon for The New York Times

Almost from the moment the pandemic spread across the United States, advocacy groups have warned that the economic fallout could cause mass displacement of low-income tenants.

In response, more than 400 state and local governments have used money from the federal CARES Act to set up funds to cover at least $4.3 billion in rental assistance — money that has helped tenants pay their bills and landlords stay current on their mortgages, according to a database set up by the National Low Income Housing Coalition, a policy group.

But many jurisdictions are reporting trouble spending it, and with barely two weeks left in the year, they are on pace to have more than $300 million left over, according to the coalition’s database. In a pattern that predated the pandemic, the programs have been complicated by bureaucratic hurdles, competing budget demands and a reluctance among landlords to take part, reports Conor Dougherty for The New York Times.

Philadelphia is a case study in the simple-but-not-easy task of helping tenants with the rent. Social programs are often a partnership in which cities provide funding and lay out rules but delegate the execution to quasi-governmental nonprofit organizations like the one Gregory Heller works at.

Like most places, Philadelphia is not close to satisfying the need for help. But through rounds of rejiggering and three phases of funding — each with its own maze of rules and requirements — Mr. Heller’s group built a team to distribute aid, whittled down the processes that delayed it and concluded that the best way to help was the most straightforward: Give the money directly to renters.

“There’s a societal belief that poor people can’t spend money the right way, and I think it’s important to start questioning that assumption,” Mr. Heller said.

The companies drawing Wall Street’s attention are notable for how niche their products and services are.Credit…Hannah Yoon for The New York Times

Until recently, the temperature-controlled storage and shipping of pharmaceutical products, known as the “cold chain,” was a relatively sleepy corner of the health care industry.

But the virus, and the temperature-sensitive vaccines that are poised to combat it, have brought new attention to the cold-chain delivery systems in the United States and beyond, Kate Kelly reports for The New York Times. Wall Street, which likes nothing better than a hot trade with the potential for big profits, is rushing to grab a piece of the action.

The companies getting attention from Wall Street are notable for how niche their operations are. Many use an elaborate network of freezers and specialized trucks and aircraft to move temperature-sensitive materials — such as blood, stem cells and tissue — around the world without compromising their efficacy. It’s a delicate process, because a product can go from vital to useless within minutes of being removed from cold storage.

Potential investors are constantly calling Stirling Ultracold, whose freezer equipment is powering UPS’s “freezer farms” in Louisville, Ky., and the Netherlands, where vaccines will be stored. “There’s not a day that goes by” that an inquiry doesn’t come in,” said Dusty Tenney, Stirling’s chief executive, who is running his Athens, Ohio, production lines around the clock.

Demand for Stirling’s freezer engines — the core component of their upright, under-the-counter and portable freezers — has soared, and the estimated waiting time for new orders is six to eight weeks, the company said. On Dec. 8, after multiple prospective investors studied the company’s financial metrics in a due diligence process, Stirling received a capital injection of an undisclosed amount that it planned to use to buy new equipment and expand production.

In October, Blackstone, the private equity giant, invested $275 million in Cryoport, a Nashville company that specializes in shipping sensitive medical materials at freezing temperatures. Investors have also been bullish on Ember, the beverage-heating company that has developed a refrigerated medical shipping box with built-in GPS and already counts two Jonas Brothers and the Brooklyn Nets forward Kevin Durant as shareholders.

Credit…WhistlePig

Moët Hennessy, the premium spirits arm of French luxury giant LVMH Moet Hennessy Louis Vuitton, is taking a stake in WhistlePig, in a bet that it can make typically American rye whiskey a global hit, the DealBook newsletter reports.

It’s the second American whiskey brand that Moët Hennessy, has invested in after Washington’s Woodinville in 2017. Terms of the deal were not disclosed.

WhistlePig brews its Whiskey in Vermont oak, and its 15-year aged whiskey sells for more than $200 a bottle. The company was founded by Wilco Faessen, now a senior banker at Evercore, and Raj Bhakta, an entrepreneur and onetime “Apprentice” contestant.

Mr. Bhakta sold his shares in the company when Byron Trott’s investment firm, BDT Capital, took a minority stake last year. BDT will keep its stake following the deal, in which no investors cashed out. The deal with Moët Hennessy does not include a path to an outright sale, Mr. Faessen said.

Mr. Faessen said that formal talks about a partnership began in January, and the pandemic that did not alter the deal, besides lengthening the time it took to work through the details. Sales for both WhistlePig and Moët Hennessy came under pressure as bars and restaurants shut, but the companies also noticed a shift to premium liquor during lockdowns.

“It’s just easier to treat yourself when you’re stuck at home and sick of doing Zoom meetings,” said Jeff Kozak, WhistlePig’s chief executive, who noted that sales were up this year.

Rye whiskey is consumed mostly in the United States, but Moët Hennessy thinks it can entice drinkers elsewhere. Connoisseurs who want to “expand their repertoire in the category of high-end whiskies” have recently turned to Japanese brands, said Philippe Schaus, the Moët Hennessy chief executive, “and we don’t see why we will not succeed to bring them to high-end American whiskeys.”

  • Domino’s Pizza said this week that it would pay a bonus of up to $1,200 apiece to more than 11,500 hourly workers in December. The bonuses will total more than $9.6 million, the pizza chain said. Earlier this year, Domino’s paid a bonus to frontline workers at its corporate stores and supply chain centers. “We have the honor and privilege of being open and operating throughout the U.S. during this crisis, and we recognize that we could not be doing it without the hard work and dedication of our team members,” Ritch Allison, the company’s chief executive, said in a statement.

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Prisoners have been excluded from Covid vaccine plans

Prisoners have been excluded from Covid vaccine plans

A protester waves a “Black Lives Matter” flag across the street during the demonstration. Representatives from various organizations, including Free the People Roc and HALT (Humane Alternatives to Long-Term), traveled to Elmira correctional facility from across the state to protest the conditions inmates were exposed to during the Covid-19 pandemic. Elmira, NY State Prison has seen a rash of coronavirus cases.

Kit MacAvoy | SOPA pictures | LightRocket via Getty Images

LONDON – The US and UK have already started rolling out their national coronavirus vaccination programs to help contain the spread of the virus. However, health professionals and activists are deeply concerned about the notable lack of prison populations in existing guidelines.

The U.S. Centers for Disease Control and Prevention has not yet made decisions about prisoners regarding access to vaccines, although it is believed that prison staff could be included in the second phase of the allocation. The US CDC was not immediately available for comment when contacted by CNBC.

In the UK, the Joint Vaccination and Immunization Committee has stated that the top priority of the Covid-19 vaccination program should be to prevent death and help maintain health and welfare systems.

The JCVI guidelines do not specifically mention prisons, but it is assumed that the allocation plans will be applied in a manner similar to those in detention.

Both countries have been administering the first vaccinations with the Pfizer BioNTech vaccine outside of the trial conditions in the past few days, raising hopes that mass adoption of safe and effective vaccines could end the coronavirus pandemic soon.

With coronavirus cases and related deaths continuing to surge, experts are questioning the ethics of how governments plan to distribute the first vaccines.

“We face a major dilemma here,” said DeAnna Hoskins, president and CEO of JustLeadershipUSA, a national judiciary reform organization trying to cut the US prison population in half.

Speaking at a webinar at Chatham House earlier this month, Hoskins said people incarcerated are “still fewer than people … and that’s how we react when we talk about vaccine access.”

Covid hotspots

Health officials have for years warned of the dangers of epidemics for detainees, arguing that people are unable to maintain a safe physical distance in correctional facilities due to their confinement in small common areas.

The coronavirus pandemic turned America’s prisons and prisons into Covid hotspots. People in prison are almost four times more likely to be infected than people in the general population – and twice as likely to die, according to a study by a criminal justice commission.

If the biggest trouble spots for Covid are prisons, doesn’t it make sense to vaccinate everyone from guards to prisoners?

Ashish Prashar

Judicial Reform Lawyer

“From my point of view and the information we have, we need to consider where prisoners fit in relation to other high-risk groups in terms of their risk. At first glance, prisoners would be at high risk for several reasons.” Seena Fazel, Department of Psychiatry at Oxford University, said in a report published Dec. 12 in The Lancet Medical Journal.

Fazel said prisoners were at high risk of contracting the coronavirus due to the underlying chronic medical conditions, age and the environment. He cited a systematic review of prison settings by his team that identified correctional facilities as high risk for infectious disease transmission with significant challenges in managing outbreaks.

“Our research suggests that people in prison should be among the first groups to receive a COVID-19 vaccine to protect themselves from infection and prevent the disease from spreading further,” he said.

A view of a new emergency care facility being built to treat COVID-19 infected inmates at San Quentin State Prison on July 8th, 2020 in San Quentin, California.

Justin Sullivan | Getty Images News | Getty Images

The CDC has recommended vaccinating those at an increased risk of infection and mortality for the coronavirus early. However, federal officials say correctional staff should be given priority access to a vaccine, but have not yet spoken out in favor of prisoners being given the same allocation.

Arthur Caplan, a professor of bioethics at New York University’s Grossman School of Medicine, said in the report released by The Lancet that he disagreed with plans to vaccinate prison staff only.

“If you are at risk and older or sick, you should just get vaccinated. If you are in a state where you cannot isolate yourself, you should get vaccinated. I see no reason to distinguish them.”

Racial differences

“If the biggest trouble spots for Covid are prisons, doesn’t it make sense to vaccinate everyone from guards to prisoners?” said Ashish Prashar, a judicial reform attorney and senior director of global communications for Publicis.

Speaking at the December 4th webinar at Chatham House, Prashar said, “All the guards, all health workers, all people going to and out of prison are spreading it to society. Wouldn’t you start on?” Hotspots and stop them? And take care of these people first? “

A nurse holds a sign during a protest by the nurses at Rikers Island Prison about the conditions and threat of the coronavirus on May 7, 2020 in New York City.

Giles Clarke | Getty Images News | Getty Images

Mass incarceration in the United States does not affect all communities equally, as African Americans are disproportionately incarcerated in US correctional facilities.

In addition to racial disparities within the U.S. criminal justice system, an updated CDC report earlier this month found that Hispanics and Black Americans, age-adjusted, were nearly three times more likely to die of complications from the coronavirus than white Americans.

“Half a million people haven’t been convicted of a crime, but we’ve taken their liberty away,” said Celia Ouellette, founder and executive director of the Responsible Business Initiative for Justice, a nonprofit group that advocates greater security about criminal justice systems and security Imprisonment. Her comments related to those in the US who have not been convicted of a crime but are being held in prisons.

“So there is a moral obligation to treat these people just like the surrounding community – or possibly better because they do not have the same access as the surrounding communities.”

“We need to stop thinking of inmate populations as a category of people and see them as people, as we do in the prisons and jail communities,” Ouellette said at the same webinar at Chatham House.

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New York Metropolis Cultural Teams Awarded Extra Than $47 Million in Grants

New York City Cultural Groups Awarded More Than $47 Million in Grants

In a year of layoffs and budget cuts, New York’s cultural institutions got some good news on Tuesday: The Department of Culture announced that it will award $ 47.1 million in its latest round of scholarships, which will go to more than 1,000 this year of the city’s non-profit organizations.

The grants include $ 12.6 million in new investments, of which nearly $ 10 million will go towards coronavirus pandemic and arts education initiatives. Funding for fellows will increase year over year, including larger funding for smaller organizations, the department said.

The award includes a $ 3 million increase for 621 organizations in low-income and pandemic-hit neighborhoods, and $ 2 million for five local arts councils that distribute the funds to individual artists and smaller nonprofits. Twenty-five organizations that offer arts education programs will receive a $ 750,000 portion that will be allocated for this purpose.

The Apollo Theater, Jazz at Lincoln Center, and the Museum of Chinese in America will be among the 93 organizations to receive some of the largest grants, each over $ 100,000. Both the Metropolitan Opera and the New York Philharmonic, which recently hit the headlines for negotiations with their unions, are receiving grants of over $ 100,000. A total of 1,032 non-profit organizations are funded.

The department also made changes to its process that make it easier for organizations to receive multi-year grants that were previously only available to groups with an annual budget greater than $ 250,000. Almost all groups that received funding for the fiscal year ending in June 2021 will receive support at a comparable level for the year ending in 2022 until the city budget is approved, the ministry said.

A Covid-19 impact survey the department commissioned this spring found that smaller organizations were among those hardest hit by the pandemic, and that a total of 11 percent of arts organizations did not believe they would survive the pandemic in early May . Smaller organizations generally lack the foundations and wealthy donors that provide some safety net for larger institutions.

“We cannot tackle the huge challenges that lie ahead of us on our own, but we have focused on providing long-term stability to the smaller organizations most vulnerable to the effects of Covid-19,” said Gonzalo Casals, Commissioner for cultural matters. said in a statement.

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‘The world is prepared and open’ for extra range on Wall St, exec says

'The world is ready and open' for more diversity on Wall St, exec says

Tiffany McGhee, founder of Pivotal Advisors, told CNBC on Tuesday that the increasing opportunities for various companies are starting to recognize historical barriers that have been present in the financial services industry in particular.

“If you’re interested in working with a company that is variously owned, the traditional metrics may not work. We may not have a 50-year track record,” McGhee said in an interview. But she emphasized, “that doesn’t mean we don’t know what we’re doing.”

McGhee officially founded New York-based Pivotal Advisors this week after nearly a decade at Momentum Advisors where she was CEO and Co-CIO of institutional investment practice. Pivotal, which is outsourcing the duties of chief investment officer, specializes in working with institutional clients such as pensions and foundations, McGhee said.

According to a press release, Pivotal is the first in its class to be run by an African American and an Afro-Latina woman. McGhee, whose career began on Wall Street 16 years ago, believes the 2020 calculation of racial justice helped create an opportunity for Pivotal to be formed.

“I think there has never been a better time to start a company for someone like me because it seems the world is ready and open,” said McGhee, who is also a CNBC employee. She pointed to the protests against Black Lives Matter that swept the nation that summer, and subsequent commitments companies made to increase board diversity, for example.

Businesses can do more to address economic inequalities in the US, such as hiring differently owned companies for professional service contracts, she said. “If you want to move the needle, that’s how you do it.”

John W. Rogers Jr., Co-CEO and Chief Investment Officer of Ariel Investments, offered a similar roadmap to help drive the success of companies of diverse ownership. In an interview Tuesday on CNBC’s “Mid-Term Report,” Rogers said that established organizations have a role to play across the US economy.

“If you really want to build a big business, you need access to both customers and capital. And many of us in the financial services industry who started our own businesses fondly remember those early customers,” said Rogers.

For Ariel, which Rogers founded in 1983, those early customers were the city of Chicago and Howard University, a historically black college in Washington, DC, he said.

“They gave us the opportunity and once we had those early customers it gave us the confidence to get more customers and it attracted more customers, so customer access is vital,” said Rogers, whose Ariel’s first run by African Americans was firm to have a family of mutual funds.

McGhee agreed with Rogers, especially for various financial firms. “Nobody in the investment industry likes to be your first. And I think when you’re a fund, people get the idea that you’re starting from scratch,” she said. “If you’re an investment advisor, that first client is difficult to find because the first thing they’ll ask you is, ‘How much money are you managing?'”

Typically, Rogers said companies have focused their efforts on creating opportunities for minority-owned companies through supplier contracts. In today’s knowledge economy, however, Rogers cautioned decision makers to take a broader perspective.

“That’s why we want anchor institutions in our country – whether it’s a university, a museum, a hospital, or a large corporation – to ensure that they really do business with minority companies in everything we do.”

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MacKenzie Scott Proclaims $4.2 Billion Extra in Charitable Giving

MacKenzie Scott Announces $4.2 Billion More in Charitable Giving

In her brief career as one of the world’s foremost philanthropists, MacKenzie Scott has made a name for herself for the sheer volume and speed of her donations, donating nearly $ 6 billion in her fortune this year alone.

Ms. Scott, a writer who was once married to Amazon founder and CEO Jeff Bezos, announced in a Medium post Tuesday that she’d given nearly $ 4.2 billion to 384 organizations over the past four months have. Many of the groups are focused on basic needs for millions of people during a difficult year, including food banks and meals on wheels.

“This pandemic has been a wrecking ball in the lives of Americans who have already struggled,” Ms. Scott wrote. “Economic losses and health consequences were worse for women, people of color and people living in poverty alike. Meanwhile, it has significantly increased the wealth of the billionaires. “

Mainstays like NAACP, Easterseals, Goodwill and United Way were on the list. This also applies to more than 100 separate YMCA and YWCA organizations across the country which, like many nonprofits, have lost tremendous revenue even though the demand for their services has increased.

And smaller organizations like a nonprofit affordable home lender in Minnesota and a group helping people pay off medical debts also received funding.

Ms. Scott’s post did not include the amounts paid to each organization, but it did say that the full amount pledged is prepaid and unrestricted or “no commitment” as she put it.

Morgan State University, a historically black university in Baltimore, announced it had received $ 40 million, the largest private gift in the institution’s history. Ms. Scott said the money went to groups in all 50 states, Washington and Puerto Rico.

Chuck Collins, director of the Charity Reform Initiative at the Institute for Policy Studies, said he couldn’t think of anyone who gave away more this year, at least in terms of publicly announced grants. “She’s responding to the current moment with urgency,” said Mr. Collins.

“They think of all of these tech achievements, they are the big disruptors, but it disrupts the norms surrounding billionaire philanthropy by moving fast and not creating a private foundation for their great-grandchildren to give away the money,” added Collins.

The Institute for Political Studies has pushed for legislation that will double the amount of money foundations will have to pay from 5 percent a year to 10 percent for the next three years to meet the yawning needs caused by the pandemic.

For context, the Gates Foundation, in many ways the largest and most influential nonprofit in the world, raised $ 5.1 billion in direct grants with the fortunes of both Microsoft founder Bill Gates and investor Warren E. Buffett. Dollars awarded in 2019. However, the Gates Foundation has decades of experience and more than 1,600 employees, while Ms. Scott only referred to a team of advisors to help her find good causes.

While the Gates Foundation may donate more than $ 5.9 billion through its Covid-19 response, the number shows how quickly Ms. Scott has risen to become the number one donor worldwide.

In July, Ms. Scott announced that she had donated $ 1.7 billion to historically black colleges and universities, as well as groups promoting women’s rights, LGBTQ equality and the fight against climate change, among others. Howard University said at the time it had received $ 40 million, a donation it described as “transformative”.

When Ms. Scott and Mr. Bezos were divorced last year, Ms. Scott received 4 percent of Amazon’s outstanding shares, or 19.7 million shares. They were valued at around $ 38.3 billion at the time. Those stocks would be valued at approximately $ 62 billion today after a pandemic-triggered surge in Amazon stocks. It’s not clear how many stocks she sold.

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Astra Rocket 3.2 reaches house after launch from Alaska

Astra Rocket 3.2 reaches space after launch from Alaska

Astra launches Rocket 3.1 on September 12, 2020 in Kodiak, Alaska.

John Kraus | Astra

San Francisco-based startup Astra was the youngest U.S. rocket builder to hit space on Tuesday with the successful launch of its Rocket 3.2 vehicle from Kodiak, Alaska.

The missile was about to enter orbit, and Astra CEO Chris Kemp told reporters after launch that the vehicle had reached the target altitude of 390 kilometers but was “only half a kilometer per second short” of the target orbit speed.

“This has far exceeded our team’s expectations,” said Kemp.

Astra shared images captured by the rocket on the edge of space. The rocket carried no satellites or other payloads as the launch was a demonstration mission.

Astra was founded just over four years ago in October 2016. Headquartered in Alameda, California, Astra has raised approximately $ 100 million to date from investors including Advance (the investment arm of the family of late billionaire SI Newhouse), ACME Capital, Airbus, Ventures, Canaan Partners and Salesforce founder Marc Benioff .

The company’s missile is about 40 feet tall, making it a small launch vehicle category. These small rockets have become increasingly popular due to the increase in the number of small satellites and spacecraft, often the size of a mailbox or washing machine, in search of trips into orbit. The Astra rocket is said to be able to carry up to 100 kilograms into orbit.

Currently, the small rocket business is dominated by Rocket Lab, which has launched 16 missions with its 60-foot electron rocket to put up to 300 kilograms into low-earth orbit. Elon Musk’s SpaceX also often contains small satellites as “ridesharing” facilities on its much larger Falcon 9 rocket, which is 230 feet high and can carry up to 22,800 kilograms into orbit.

Along with SpaceX and Rocket Lab, Astra is the third US company to have started privately developing a satellite launch system and successfully reaching space since the turn of the century.

Astras Rocket 3.0 during launch preparations in Kodiak, Alaska.

Astra / John Kraus

As the name suggests, Rocket 3.2 is the latest in Astra’s work developing his vehicle. Rocket 3.0 was destroyed on the launch pad due to a valve problem in March while the company was preparing it for launch.

Rocket 3.1 successfully launched on September 11th, but failed to get out of the atmosphere. The missile’s engines fired for about 30 seconds before a problem with its guidance system caused the engines to shut down and the missile to fall back to Earth. Chris Kemp, CEO of Astra, said after Rocket 3.1 launched he expected it to be the first of three flights before the company hits orbit.

Astra uses a very small team of local staff to launch its missiles and sends about half a dozen people to Alaska to prepare for launch.

The company has customer contracts for a few dozen launches once it begins commercial service. A single customer can purchase a dedicated Astra launch for around $ 2.5 million. That makes its rockets competitive against other companies that offer small rocket trips into space, as Rocket Labs Electron costs about $ 7 million.

Kemp said that Astra will be flying payloads in the upcoming Rocket 3.3 launch, which the company expects early next year.

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One Wild Mink Close to Utah Fur Farms Exams Optimistic for the Coronavirus

One Wild Mink Near Utah Fur Farms Tests Positive for the Coronavirus

A wild mink in Utah tested positive for the coronavirus. Mink on fur farms in the area became infected with the virus, and the U.S. Department of Agriculture, along with other government agencies, tested wildlife for possible infections that could spread from those farms.

The division reported the case to the World Organization for Animal Health, noting that it appeared to be the first wild animal to naturally become infected with the virus that has infected mink in a number of fur farms around the world.

The virus has spread from people to mink and in some cases back again. A mutant strain of the virus that jumped back to humans from the mink caused Denmark to kill all of its mink and wiped out a large industry. No further evidence has supported initial concerns that the mutated variant of the virus might affect the usefulness of vaccines, but scientists are still concerned about how easily the virus can spread on mink farms.

“This is an important reminder that farm (and human) resorting to wildlife is also a real thing and needs to be on our radar,” said Jonathan Epstein, vice president of science and outreach for the EcoHealth Alliance, of the positive test in wild mink. Dr. Epstein and other scientists and conservationists have warned of the possibility that the coronavirus could establish itself in some wildlife species.

ProMed, an information site for the International Society for Infectious Diseases, published a note from Thomas DeLiberto and Susan Shriner of the Department of Agriculture’s Animal and Phytosanitary Inspection Service describing the test results.

They said that the positive test showed a virus with the same genome that had been found in infected mink, but that a test did not mean the virus was now spreading in the wild. “There is currently no evidence that SARS-CoV-2 was circulated or established in wild populations around the infected mink farms. Several animals from different wild animal species were sampled, all the others tested negative, ”the statement said.

“Finding a virus in a wild mink but not in other nearby wildlife likely indicates an isolated event, but we should take all of this information seriously,” said Tony L. Goldberg of the University of Wisconsin School of Veterinary Medicine -Madison. He added, “Controlling viruses in humans is ultimately the best way to prevent them from spreading to animals.”

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Smartphones and algorithms may rework the upkeep of cities

Smartphones and algorithms could transform the maintenance of cities

Potholes can be a dangerous hazard for road users around the world.

georgeclerk | E + | Getty Images

From street lights and crossroads to trash cans and sidewalks, the cities we live in require constant maintenance and upkeep to ensure they are functioning properly.

Roads are no different: Large cracks and potholes pose a number of potentially dangerous hazards for drivers, pedestrians, cyclists and local authorities.

According to the 2020 edition of the Asphalt Industry Alliance (AIA) annual road maintenance survey, preventing such deterioration can have significant financial implications.

In FY 2019/20, the “reactive” repair of filling a single pothole in England, London and Wales cost an average of £ 70.91 ($ 94.86). When this repair was scheduled, the AIA report puts the average cost at £ 43.10.

Given the above, it may come as no surprise that a number of companies and organizations are currently working on systems and processes to identify problems on the road before they become a major problem.

Earlier this year the UK Department of Transport announced that it would be working with local motorway authorities, digital mapping company Gaist and companies such as Uber, Deliveroo and Ocado to identify what are known as “pothole hotspots” in England.

And on Monday, Statkraft Ventures, backed by the state-owned Kraftkraft Group, a Norwegian state-owned energy company, announced that it has invested in Vialytics, a German company that uses windshield-mounted smartphones and algorithms to monitor road conditions.

Put simply, the system that Vialytics uses includes a specially adapted smartphone that is attached to the windshield of a vehicle.

The user opens an app on the phone that collects road-based data such as markings, cracks and manholes. This information is passed on to the company’s system, which uses an algorithm to analyze the images for damage.

Any problems detected by the system are then georeferenced and uploaded to the company’s web GIS – a visual tool that allows users to see where maintenance may be required.

Statkraft Ventures said the new investment – the announcement did not reveal the amount – would allow Vialytics to “further accelerate its expansion as a partner for cities and towns”.

Back in England, the University of Liverpool announced in October that it had launched a new company focused on commercializing research related to road faults.

The overall goal of Robotiz3d Ltd is to use robotics and other technologies to improve how problems such as cracks and potholes on roads are detected and then corrected.

Going forward, the company – a joint venture established by the university in collaboration with A2e Ltd – will seek to develop its Autonomous Road Repair System (ARRES).

At the time, Paolo Paoletti, Robotiz3d’s chief technology officer, said the proposed system “would be able to autonomously detect and characterize road defects such as cracks and potholes, assess and predict the severity of such defects, and repair cracks with it they don’t develop. ” in potholes. “

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Why Paying Folks to Be Vaccinated May Backfire

Why Paying People to Be Vaccinated Could Backfire

The approval of the first Covid-19 vaccine in the US was celebrated over the weekend as the beginning of the end of the pandemic. However, the road between giving off the first doses and getting widespread vaccination at rates that inhibit the spread of the coronavirus is far from easy. In addition to the logistical challenges of distributing the vaccine, people also need to be ready to take it. A new poll found that more than a quarter of Americans hesitate.

Two prominent economists, N. Gregory Mankiw and Robert Litan, and politicians John Delaney and Andrew Yang have proposed or supported paying Americans for the vaccine. At first glance, this seems like a reasonable idea; The economy teaches us that people respond to incentives. However, behavioral research suggests that this strategy could backfire.

Humans do not respond to incentives like rats pull levers for food. You are trying to interpret what it means to be offered. In this case, there is a risk that the vaccine will not be a valuable asset.

Studies cited in an article titled “Tom Sawyer and the Construction of Value” (referring to a famous section in the Mark Twain book where Tom convinces his friends that whitewashing a fence is a desirable activity ) have found that people are unsure whether something is good or bad, the prospect of payment helps them make negative decisions.

In one of the studies, a professor asked his students if they would attend a reading of Walt Whitman’s Leaves of Grass, and offered half of the students payment to attend the reading while the other half asked if they would would pay to attend. Those who were offered payment reported less interest in participating. For those who are unsure of whether to get vaccinated, like those who are unsure of whether to attend the poetry reading, paying will most likely send the message that this is something you are not want to do without compensation.

It’s also likely that people will conclude from the payment that the vaccine could be risky. In our research with Kevin Volpp and Alex London, we found that people naturally assume that payments are a risk. In a series of experiments, we have described clinical studies that offered different payment amounts for participating in a study with an unfamiliar test procedure. We found that when the payment was higher, people believed that the risk of a study was greater, even though the descriptions of the study procedures were otherwise identical. Paying people to be vaccinated could also lead them to conclude that it is riskier than they would otherwise assume.

Data so far suggests that Pfizer and Moderna’s early Covid-19 vaccine candidates are safe and effective – evidence that has already led to the Pfizer candidate’s emergency approval. Although direct payments for vaccinations could increase acceptance for some people in the short term, the effects just described could ultimately produce the exact opposite of the intended effects, especially for those unsure whether the risks of vaccination are outweighing the benefits.

Payments not only make the vaccine appear riskier, but they may also reduce the likelihood that people will be vaccinated for the selfless goal of helping others. Research shows that paying people for altruistic measures often backfires. In one study, Israeli students who raised for charity on a given day of the year raised less money than they were paid a small commission.

The report on the study, entitled “Pay Enough or Not Pay at All,” argued that the amount paid was too little to motivate students but enough to ask questions about students’ motives for doing have raised a lot of money in the minds of the people watching these students, and possibly even on the part of the student collectors themselves. The same logic would suggest that paying people for vaccination might decrease the motivation of those who are or like to be altruistic would do.

A more promising approach might be to make desired activities such as travel dependent on vaccination. Australian airline Qantas reports that it and other airlines are considering making vaccination compulsory for international air travel. When vaccination is associated with positive results, such as B. Travel and access to large public events, the vaccination itself is rated positively. When people see the various benefits of vaccination, skepticism will likely go away for at least some.

Ultimately, the circumstances surrounding the introduction of the vaccine can affect attitudes towards it. Given the complexities of making and distributing the vaccine, it is almost certain that it will be in short supply for months. The silver lining is that much research in marketing has shown that scarcity can be a huge demand stimulator. Seeing others want to be vaccinated and desperately waiting to get to the top could increase the likelihood that people will see the value of the vaccine and want it for themselves.

George Loewenstein is the Herbert A. Simon Professor of Economics and Psychology at Carnegie Mellon University. Cynthia Cryder is an Associate Professor of Marketing at Washington University’s Olin Business School in St. Louis.