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Detenido y liberado el líder de la Comisión Islámica P19 TERRORISMO
Muere Jorge M. Reverte, el escritor que narró las guerras
CULTURA
Aznar y Rajoy niegan la caja b que funcionó 19 años en el PP Los expresidentes rechazan Los dos líderes alegan que durante sus mandatos que nunca controlaron hubiera financiación ilegal las cuentas del partido PABLO ORDAZ / J. J. GÁLVEZ OSCAR L. FONSECA, Madrid José María Aznar y Mariano Rajoy, expresidentes del Gobierno y del PP, negaron ayer en juicio que durante sus mandatos funcionara una caja b con la que se hubiese financiado ilegalmente la formación conservadora. Aznar (con mascarilla) y Rajoy (a cara descubierta) recalcaron en su declaración por videoconferencia que entre sus competencias no estaba el control financiero del partido, pues esa era una función de los tesoreros. Y pe-
Cuatro ex altos cargos han confirmado ya que cobraron de la contabilidad paralela
José María Aznar y Mariano Rajoy, ayer en su declaración por videoconferencia ante el tribunal que juzga el caso de la caja b.
se a esa ignorancia de las cuestiones económicas, ambos aseguraron que nunca existió una caja b en el PP y que, por tanto, nunca cobraron sobresueldos en negro. Tras diez sesiones, el tribunal ya ha escuchado el testimonio de tres exparlamentarios del PP y de un exgerente que confirman haber recibido el dinero reflejado en los papeles de Bárcenas y que no figura en la contabilidad oficial, lo que acredita el funcionamiento de una caja b durante 19 años. PÁGINAs 14 Y 15 EDITORIAL EN LA PÁGINA 10
La UE endurece la exportación de vacunas en pleno pulso con AstraZeneca
Casado marca líneas rojas a Ayuso: Vox no puede entrar en el Gobierno El PP ficha a Toni Cantó, exdirigente de Cs, para su lista en Madrid J. CASQUEIRO / E. G. DE BLAS Madrid Pablo Casado reniega de que Vox pueda entrar en ningún gobierno del PP, incluido el de Madrid, en contra de lo que defienden en privado consejeros y asesores de Isabel Díaz Ayuso. Casado, según fuentes de su entorno, ve “una locura” que Vox quiera gobernar con el PP y confía en que el 4-M permitirá un Ejecutivo en solitario. Entretanto, el PP fichó para su lista en Madrid a Toni Cantó, exdirigente de Ciudadanos, como independiente. PÁGINAS 16 Y 17
Los mensajes internos de la Biblioteca Nacional en 2014 sobre el robo
“Informada directora de caso Galileo”
Dos partidas en Italia y Holanda crean tensión
JOSÉ MARÍA IRUJO, Madrid Unos mensajes de correo electrónico intercambiados en 2014 entre dos responsables de la dirección técnica de la Biblioteca Nacional apuntan que la directora, Ana Santos, sí fue informada entonces de la desaparición del Sidereus nuncius, el libro de Galileo impreso en 1610. Uno de los mensajes dice: “Informada directora de caso Galileo”. PÁGINA 27
LL. PELLICER / G. ABRIL, Bruselas La Comisión Europea aprobó ayer un nuevo mecanismo para prohibir las exportaciones de vacunas para la covid a los países que no suministran a la UE, con independencia de si la compañía farmacéutica está cumpliendo su contrato. Bruselas pidió ayer explicaciones a AstraZeneca, cuyos retrasos en las entregas han lastrado la campaña de vacunación, sobre 29 millones de dosis que tenía fuera de su radar y se almacenaban en Italia. PÁGINA 21
ERIC GREEN Investigador del genoma
“Entendemos ahora el cáncer de una forma totalmente diferente”
Merkel pide perdón y rectifica el cierre casi total de Alemania P22 Sanidad renuncia a imponer nuevas restricciones en Semana Santa P23
P29
EFE
Un megabuque encallado bloquea el Canal de Suez El estratégico Canal de Suez, que conecta el mar Rojo con el Mediterráneo, estaba ayer bloqueado debido al encallamiento del Ever Given, de la naviera Evergreen, uno de los buques portacontenedo-
res más grandes del mundo, con 400 metros de eslora. El incidente atascó una de las grandes arterias del transporte marítimo mundial, lo que hizo subir un 5% el precio del petróleo. PÁGINA 42
NUÑO DOMÍNGUEZ, Madrid El médico y biólogo molecular Eric Green, uno de los padres del genoma humano, admite en una entrevista que este avance aún no ha logrado derrotar al cáncer. “Pero ahora entendemos el cáncer de una forma totalmente diferente que antes”, explica. PÁGINA 24
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Grind from home The toxic mix of remóte working and long hours — BROOKE MASTERS, PAGE 23
Suez debacle Mishap clogs trade artery
Briefing ►Liverpool city councii’s wings clipped Control o f so me of the local authority’s fnnctions is t o be seized by central gover nment in order to end what a cabinet minister dubbed the city council’s “pervasive and rotten ctdtiue".- p a c e i
>- Intelmoves to step up chip production
A digger attem pts to release a giant container ship from the banlcs of the Suez Canal in Egypt yesterday after the vessel, 400m etres longand59 metreswide, ta n agro u n d in stro n g winds and became lodged across one of th e world ’s bus iest trade routes. The Tlaiwan-owned Ever Given, whieh is almost as l o n g as the Em pire State Building ¡s tall, is weclged across the S o u th e r n e n d of the canal, witli dredgers on their way to helpthe rescue eífort, Abou 150 vessels transit the 120-mile canal every day, transportlng at least 10 per cent of global seabome trade and a similar amount of oil shipments. Fears are growing that the disniption might h it global supply chains. Oil is transported tlirough the waterway from the Midd le Eas t to E in ope and North Amer ica, as well as from Russia to Asia. R eportpaget Lex page24
Intel is to spend $20bn on build ing two faetones in Arizona, tlie lmchpinofa tumroimd plan thatalso indudes outsourcing and launchingaserviceto make chips for other companies.- p a s e l e x , p a &e 24
»- Bally’s nears £ 2bn UK gambling tie-up The UScasino opera tor has agreed thekey terms of atie-up withgamblinggroup Gamesys, the latesttransatlantic takeover designed to crack the American spoits-betüng m arket.- p a g e 9
•- KKR tunes in to music boom with BMG The US prívate equ ity finn has teamed up w ith one of tile laigest music groups to target biglabels and catalogues d m i n g a consolidation boom.—p a &e k >
* BA pledges slots to secure new funds British Airways owner IAG has fo r the flrst time offered someof its “crown jewel” landingslotsas collateral to secu re S1.8bn in new fu nd ing,- page 13
►Netanyahu faced with unlikely alliance
UK and EU try to cal ni row after trading barbs on vaccines supply #• Talks seek reciprocity’ Brussels to discuss bar on exports SAM FLEM IN G AND M IC H A E L PEEL - BRUSSELS GEORGE PARKER — LONDON
The UK and EU have moved to calm tensions over access to coronaviiiis vaccinations despite a top Brussels policym aker accusing th e UK of “vaccine natío naüsm” in its pandemicresponse. Britain and the European Commission íssned a joint statement yesterday saying that there had been discussions on developing a “reciprocally beneficial relationslxip” to tackleCovid-19. The statem ent conunitted both sides to working togetlier “tocreateawin-win situation and expand vaccine su ppty for all our citizens". Boris Johnson, the prim e minister, insisted that he díd not want to see a tit-for-tat vaccine war. Britain has offered to help boost pro-
duction of the AstraZeneca vaccine at th e Halix p lan t in th e D utch City of Leiden, while Downing Street has not ruled out theUK “giving up” someof the millions of doses that it claims have been co n tracted to it. T h e EU also claims the vaccines. But Matt Hancock, tlie health secretary, said th attlie EU would bemaldng a serious m istake if it started blocking vaccine exports to the UK, including shipments of AstraZeneca doses made in the Netli erland s. “I believe that free trading nations follow th e law of contracts,” he told the Financial Times in an interview. R eferrlng to th e EU’s A straZeneca contract, he said: “They have a fbest efforts’ contract and we have an exclusivitydeal.”
He said th a t both sides were looking to resoJve the dispute and th a t talks were “co-operative, practical and collaborative”.But headded: “Our contract trum ps theirs. It’s called contract law — it'sverysti'aightforward.” Hancock said that life Sciences coinpanies would in futui'e base themselves in Britain, not in a protectionist EU: “In the UK you can export anywhere in the world —we’re never goingto p u ta stop tothat.” However, Thierry Bretón, the EU’s internal marketcommissioner, said the UK needed to recognise how dependent it was on EU vaccines and display greater “reciprocity” in its dealings. “We have a feeling that the vaccine nationalismis really on theother side of the Channel,” he said in an interview
Hancock cites contrtact law
M att Hancock: ‘In theU K you can export anywhere in th e w orld — we’re never goingto put a stop to th a t’
with the FT. Despite th e EU’s “solidarity” with British citizens. he added. “we are not seeing any vaccines in th e UK arrm nghere”. B retón piled p re ssu re on A stra Zeneca, saying he wanted explanations for why tire company had been so inuch more successful in meetingits commitments to Britahi than to Brussels. The conim ents w ere m ade as EU leaders prepared to discuss coimnission proposals to strengtlien thebloc ’s ability to block exports of Covid-19 vaccines. The ndes aim to clamp down on exports to countries th a t are failing to share theirproductiouof vaccines. Matt Hancock Interview pago 3 News & a na lysl s page 4 AstraZeneca In the spotlight page 11 Lex page 24
Ant demands higher online fees as Ma seeks to boost valuation after pulled IPO SUN YU — BEUING
Eastern Europe’s fraglle defences face virus surge Central and eastern Europe has been hit hard by Covld-19 and the plcture Is darkenlng. with more multlgenetation households than western Europe and more jobs that cannot be performed remofely, the more Infectious varlant Isrunnlng rlot. Pollcy mlstakes have not heiped. Fragüe falled to boost Its tracing system and Warsaw om ltfed to screen adeguately the thousands of Polos returnlng from the UK, where the varlant was discovered. Ana l y s i s . p a g e 4
Ant Group is demanding a larger si ice of lucrative fees from its popular paynient platfo n n at the expense of local banlcs as China’»largest fintech tries to offset losses from agovernm entcrackdoivn on its lendingbusiness. The move will help A nt’s controlling shareholder, Chínese billionaire Jack Ma, rebutid tlie gronp’s valuation after Beijing pulled its planned $37bn initial public offeringin November. Mahas since lai'gely disappeared from public view while Beijing has launched new mies restricting online lending as part of a wider crackdown on fintechs, whichPresidentXiJinpingsignaUedthis montli was only just begimiing. Mtütiple lenders told the Financial Times they had agreed to allow A n t’s Alipay, china's largest mobile payment
Service, to increase its share of the Processing fee from transactions on its platform byup to 80 per centthisyear. Merchants in China payr a fee on each transactíon made using Alipay th a t is split between the fintech, the custo mer’s bankand Unionpay, the coimtry’s card Services company. Alipay’s share of this fee has been increas ing while that of the banks has beenshrinking. Instead of using cash or credit cards, most Chínese consm ners make paymentsthrough mobile apps, such as Ali pay, for everything from Starbucks coffees to train tickets and online shoppí ng. This has given Alipay significant pricing power in whatit charges for its Services. China’s mobile paym ent platforms, led by Alipay, recorded Rmb295tn ($45.2tn) in transactions last year, against Rm bll7tn for bank card sales. “We can’t afford tolose a partner like
For the latest news go to www.ft.com © THE FINANCIAL TIMES LTD 2021 NO: 40,665 A
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Facebook hasdiscovered asophisticated Cliinese spying push that tried to trick Uyghur activists into downloading malicious software t ha t would allow surveillance oftheir devices.- pa&e ft view. page 22
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Ant,” said a banket who works with the fintech group. A nt’s fee increase also unders cores the challenges faced by Beijingin tamingthe fintech Champion, whose dominance of online finance in China has weakened the state’s grip on the sector. “Ánt has the u p p e r hand kn price negotiations because we count on Ali pay to expand our business,” said an execuüve at a bank that works with Ant, “There is littlethegovemment cando.” Ant did not respond to requests for comment fromtlie FT. One person cióse toAntsaid it was “still looking foran IPO and it wants to improve its valuation”, adding: "The solution is togrow in areas that come with fewer restrictions.” People cióse to tlie PBoC said the cen tral bank ivas considering various measmes to break Ant’s monopoly.
Israelis face months of coalltion talks afterthecountry's fourtli election in twoyears offered PM Benjamín Netanyahu oidy an unlikely coalit ion deal with an Islamistparty.- p a g e 6
US 3m Bills
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THURSDAY, MARCH 25, 2021
Newsom picks Bonta as state’s top law officer Assemblyman and death penalty foe would be first Filipino American attorney general in California. By Patrick McGreevy and Phil Willon
Photographs by Wally Skalij Los Angeles Times
VALERIE ZELLER puts on her wedding gown at a Wednesday rally in Echo Park, where she got married last
weekend. Homeless residents and advocates held the rally to protest the city’s planned closure of the park.
Echo Park becomes battlefield over city homelessness policies By Benjamin Oreskes and Doug Smith The impending showdown at a homeless encampment on the banks of Echo Park — the iconic cinematic backdrop for Hollywood stars from Charlie Chaplin to Jack Nicholson — is becoming a highly charged test of city leaders’ struggle to balance constituents’ demands for clean streets and public spaces with the evergrowing tragedy of people who have no homes. While other large homeless encampments have been shut down with less fanfare, the future of the one at Echo Park is emerging as a flashpoint in the city’s struggle with homelessness. Unlike in some previous sweeps, when the city has temporarily displaced [See Echo Park, A6]
TENTS HOUSING homeless people line Echo Park during a Wednesday rally. Some residents of the camp have taken the city’s offer for shelter in hotel rooms.
A window into a deep well of hate By Brittny Mejia As Syl Tang boarded an elevator in New York City this month, a woman pulled up the corner of her eye in a familiar gesture mocking Asians. The woman then launched into a coronavirus tirade — she had stayed at home for a year and done everything right, yet “a foreigner” gave her the virus. Tang’s anger rose as she found herself at that well-trodden crossroad faced by anyone targeted because of race, gender, sexual orientation or religion: Stay quiet, or say or do something and possibly risk an escalation? For many Asian Americans, from immi-
Ignore it? Fight back? Asian Americans navigate racist harassment.
grants to fifth generation, incidents like the one Tang endured have been an all too normal part of their lives — usually not rising to physical attacks but feeling at times like a window into a deeper well of hate. Now a recent spate of attacks against Asians, punctuated by the shooting in the Atlanta area last week that killed eight people, including six Asian women, have put a spotlight on more mundane incidents of bigotry. The verbal harassment happens in elevators, restaurant bathrooms, taxis and public sidewalks, thrusting victims into a situation for which there is no playbook. Do you make a joke of it, laugh it off and try to make the [See Harassment, A12]
SACRAMENTO — Gov. Gavin Newsom on Wednesday appointed Democratic Assemblyman Rob Bonta as California attorney general, picking a leading advocate for criminal justice reform who has campaigned to abolish the death penalty and eliminate cash bail for many offenses. If confirmed by the state Legislature, Bonta, a resident of Alameda, will be the first Filipino American to serve as California attorney general, having also set the milestone for the state Assembly when he was elected in 2012, representing a Bay Area district that includes Oakland, Alameda and San Leandro. Newsom’s appointment fills a vacancy left by Xavier Becerra’s departure to become U.S. Health and Human Services secretary in the Biden administration after he was confirmed Thursday by the Senate. “Rob represents what makes California great — our desire to take on righteous fights and reverse systematic injustices,” Newsom said Wednesday. “Growing up with parents steeped in social justice movements, Rob has become a national leader in the fight to repair our justice system and defend the rights of every Californian.” Bonta said he was humbled by Newsom’s confidence in him. “I became a lawyer because I saw the law as the best way to make a positive difference for the most people, and it would be an honor of a lifetime to serve as the attorney for the people of this great state,” Bonta said. “As California’s attorney general, I will work tirelessly every day to ensure that every Californian who has been wronged can find justice and that every person is treated fairly under the law.” Bonta’s appointment comes just days after several Asian and Pacific Islander leaders called on the governor to appoint an attorney [See Bonta, A6]
By Laura Newberry nrique stepped into his childhood bedroom on March 12, 2020, and felt the crushing absence of all that he had gained while at college for the previous seven months. The walls spoke of the nights he cried himself to sleep after he came out to his parents as a high school junior. “You’re not that kind of person,” they had told him. “It’s probably a phase.” Enrique tore down his
E
It’s like the Rio Grande, but with jaguars Jungle waterway on Mexico-Guatemala border becomes a hub for migrants’ journey. By Patrick J. McDonnell FRONTERA COROZAL, Mexico — A steady stream of boats packed with Central American migrants navigates a river that delineates the international boundary. Adults carrying babies and holding the hands of young children alight from the craft. Guides bearing cellphones point the way into a new country. “Why am I here?” asked Norma Rodríguez, a U.S.bound Honduran who was traveling with her children, ages 16, 11 and 3. “To find a better life for my family.” Is this the Rio Grande, dividing Mexico and the United States? No, this is the Usumacinta River, which forms the border between Mexico and Guatemala in the Lacandon jungle of Mexico’s southern Chiapas state. The Usumacinta — [See River, A4]
Harris leads U.S. migrant response
Attorney general nominee also reflects the new California, George Skelton writes. CALIFORNIA, B1
Biden taps vice president to be the point person in diplomatic outreach to Latin nations. WORLD, A4
Back home from college and back in the closet Forced off campus by pandemic, LGBTQ students struggle mentally living with unaccepting parents.
Asian hate crimes have too often been “swept under the rug.”
Bonta embodies American dream
COLUMN ONE
old “Dragon Ball Z” and “Sailor Moon” posters and rearranged his furniture to look more like his dorm room, but nothing could recapture the freedom he had felt at college. Now back home because of the COVID-19 pandemic, Enrique fell into a deep depression as he grappled with his parents’ unwillingness to acknowledge his queerness. Enrique is expressive and theatrical by nature, and his college friends embraced those traits. But around his parents he is reserved and quiet — a return to how he behaved before leaving for college. “It was like going back into the closet,” said the 19-year-old, who asked to be identified by a nickname for fear of harming his relationship with his family. [See Students, A7]
Rich Pedroncelli AP
ROB BONTA said anti-
Alliance before Jan. 6 attack? Far-right Oath Keepers and Proud Boys worked together to coordinate the assault on the Capitol, prosecutors say. NATION, A7
Study updates Big One forecast New research on the San Andreas fault deepens understanding of what a major L.A. quake could look like. CALIFORNIA, B1
Legal setback for open carry The 9th Circuit upholds a county law in Hawaii that limits permits for guns in public. CALIFORNIA, B1 Weather Much cooler. L.A. Basin: 61/49. B10
Allen J. Schaben Los Angeles Times
AFTER BEING free to be himself in college, Enrique went home during the
pandemic and became depressed because his family didn’t accept his queerness.
BUSINESS INSIDE: After Nike scandal, anger and distrust over hot sneaker launches. A8
THURSDAY, MARCH 25, 2021 ~ VOL. CCLXXVII NO. 69
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Greensill’s founder spoke frequently about disrupting big banks, but before the financial startup collapsed it relied on the apparatus of Wall Street to fuel its expansion. A1 Fed chief Powell, in joint testimony with the Treasury’s Yellen before a Senate panel, indicated that he isn’t concerned about a recent rise in long-term bond yields. A2 Major U.S. stock indexes ended lower, with the Nasdaq and S&P 500 losing 2% and 0.5%, respectively. The Dow slipped 3.09 points. B11 Xiaomi has emerged as the new Chinese smartphone leader amid the decline in Huawei’s business under the weight of U.S. sanctions. B1 Facebook’s Zuckerberg, in written testimony ahead of a House hearing, said Congress should consider forcing digital platforms to earn the legal immunity they enjoy hosting third-party content. A3 Moncef Slaoui, who helped lead the U.S. Warp Speed vaccine effort, was fired as chairman of biotech startup Galvani after an inquiry into allegations of sexual harassment. B1 Tencent’s CEO emphasized his commitment to working with regulators in China, as the company posted its most profitable year yet. B4
World-Wide A cargo ship that got stuck in the Suez Canal blocked all traffic on one of the world’s busiest shipping arteries, further compounding global supply-chain problems. Egyptian authorities engaged in an effort to free the vessel. A1, A7 Democrats are weighing a variety of possible tax increases, including boosting the corporate tax rate and the top marginal income-tax rate on individuals, to raise revenue. A1 Senators squared off over nationwide voting rules, with Democrats proposing an overhaul to ease voting access, and Republicans calling it a power grab and saying states should retain flexibility. A6 AstraZeneca released more pivotal-trial data for its Covid-19 vaccine, saying the shot was 76% effective in preventing Covid-19 with symptoms, in a fuller analysis of study results than the company had earlier provided. A3 Biden asked the vice president to lead diplomatic efforts with Mexico, El Salvador, Guatemala and Honduras to stem the surge of migrants at the southern border. A10 Colorado lawmakers are calling for tougher gun curbs as investigators continue to search for clues about why a gunman killed 10 people at a Boulder supermarket. A3 North Korea launched two ballistic missiles off its east coast, the U.S. and Japanese governments said. A9 Died: W. Kent Taylor, 65, Texas Roadhouse CEO. B2 JOURNAL REPORT 5G Technology: The faces behind the 5G revolution. R1-10 CONTENTS Arts in Review... A13 Business News.. B3,5 Crossword.............. A14 Capital Account.... A2 Heard on Street. B12 Markets..................... B11
Opinion.............. A15-17 Personal Journal A11-12 Sports....................... A14 Technology............... B4 U.S. News............. A2-6 Weather................... A14 World News..... A7-10
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FROM TOP: SUEZ CANAL AUTHORITY/ASSOCIATED PRESS; PLANET LABS/AFP/GETTY IMAGES
he prospect of summer drivers crowding U.S. highways is powering steep gains in the price of gasoline, a sign of economic recovery and a boon for the pandemicravaged energy industry. A1
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Ship Wedged In Suez Canal Disrupts Trade
What’s News Business & Finance
WSJ.com
BY COSTAS PARIS AND JARED MALSIN A giant cargo ship that got stuck in the Suez Canal blocked all traffic on one of the world’s busiest shipping arteries on Wednesday, further compounding global supply-chain woes. Egyptian authorities engaged in a complicated effort to dislodge the more-than-1,300foot-long vessel, which was trapped in the canal sideways a day earlier with its bow wedged in one bank and its stern nearly touching the other during a dust storm when wind speeds reached 40 knots. A group of tugboats and a
More than 100 ships entering the Suez canal are idling as the Ever Given remains stuck
EGYP T
BY JOE WALLACE
Ever Given
Suez Canal
Suez
5 miles 5 km
Red Sea Note: Local time
Source: MarineTraffic
Egyptian authorities were working to dislodge the Ever Given, a more than 1,300-foot-long cargo ship, shown blocking traffic on the waterway Wednesday after it ran aground.
Democrats Consider Tax Hikes In Next Bill BY ANDREW DUEHREN AND RICHARD RUBIN WA S H I N G T O N — D e m o crats are weighing a variety of tax increases, including boosting the corporate tax rate and the top marginal income-tax rate on individuals, to raise revenue as President Biden finalizes his infrastructure, climate and education proposal. Following the recently signed $1.9 trillion coronavirus relief package, White House officials have crafted a preliminary plan for the next legislative push, a roughly $3 trillion proposal split into two parts. One would be aimed at infrastructure projects such as roads, bridges and water systems, while a second would focus on education and antipoverty measures. The plan also breaks the tax increases into two pieces, proposing to raise taxes on businesses as part of the infrastructure bill and reserving tax increases on high-income households for the second package, according to people familiar with the discussions. The White House said Wednesday that Mr. Biden and his economic team are finalizing the plan over the next several days, ahead of a speech Mr. Biden will make March 31 in Pittsburgh to discuss the plan. Once the White House completes its proposals, lawmakers will have their own ideas about spending, taxes and the sequencing and packaging of the legislative agenda. Democrats in Congress have started discussions about tax increases, which they back as a way to pay for programs and combat inequality. House Speaker Nancy Pelosi Please turn to page A6 Greg Ip: Carbon tax sidelined in Biden’s green push........... A2 Lawmakers spar over votingrights bill...................................... A6
String of disruptions leads to shortages..................................... A7
Price of Gas Climbs Toward $3 a Gallon
Marine traffic for 12 hours ending at 5:30 p.m. Wednesday
Idling vessels
dredger worked most of Wednesday to dig out the ship, partially refloating it and dragging it along the bank by early afternoon local time. The incident involving the Ever Given, which is one of the world’s biggest ocean vessels, had immediate consequences. Ship trackers and brokers said more than 100 ships were waiting to transit the 120-mile canal, which connects the Red Sea with the Mediterranean. Even if the blockage were to be cleared quickly, shipping execuPlease turn to page A7
The prospect of summer drivers crowding U.S. highways is powering steep gains in the price of gasoline, a sign of economic recovery and a boon for the pandemic-ravaged energy industry. Lifted by oil’s recovery and growing consumer demand, gasoline prices at pumps in the U.S. hit an average of $2.88 a gallon over the past week, according to AAA. That is up about one-third over this time last year, when pandemic lockdowns cut fuel use. Rising prices are an early season gift for fuel makers in-
Men Seeking Work Drive Migrant Surge at Border
cluding Valero Energy Corp. and Phillips 66 after a bruising year, helping to make energy shares the top-performing sector this year in the S&P 500. A proxy for profit margins at refiners, calculated from the gap between gasoline and crudeoil futures, recently neared its highest level in three years at more than $24 a barrel. Drivers are already paying a lot more than $3 a gallon in some states. In California, the most expensive market, average prices stand at $3.88, according to AAA. Motorists in Mississippi, Texas and Ohio, on the other hand, are paying Please turn to page A2
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Adults make up most of those caught trying to illegally cross into U.S. BY JUAN MONTES AND ALICIA A. CALDWELL The surge in illegal immigration across the southern U.S. border is shaping up to be the biggest in 20 years. Unlike migrant surges in 2019 and 2014, which were predominantly made up of Central American families and unaccompanied children, so far this one is being driven by individual adults. Most of the migrants are Mexicans, often men in search of work with the pandemic easing and the U.S. economy set to boom. Apprehensions at the southern border totaled 382,000 from the beginning of the fiscal year in October through February, up 42% compared to the same period of 2019—a year that saw the highest number of apprehensions since 2007. In 2020, the influx of migrants plummeted due to the pandemic. Single adults account for 82% of the ap-
prehensions so far this fiscal year, according to U.S. Customs and Border Protection data. Some 60% of all single adults apprehended were Mexicans. Border patrol agents say the majority of single adults they catch are men, entering to look for work such as picking fruits and vegetables, roofing and dishwashing. The influx of children arriving alone at the border has captured broad attention. While apprehensions of mostly Central American families and unaccompanied minors have grown in the past few months, their numbers overall are still much smaller than those of adults. The number of families caught trying to cross the border rose to 39,000 during the Please turn to page A10
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Digital publisher uses children’s online searches to determine hits; Hoot the owl BY ELLEN GAMERMAN A chaotic time-traveling owl named Hoot is at the center of the new children’s book “Time Buddies,” which is now breaking records on the online reading platform Epic. The digital comic book passed one million reads in its first five days last week. Epic predicted as much. It engineered the book to become a hit with kids ages 6 to 10 by basing its new owl You heroine partly on children’s preferences and reading habits on the site. When a kid’s sticky fingers search for something to read, Epic captures that activity and feeds the information into its book recommendation engine— a tool that also informs the cre-
WORLD Netanyahu’s election impasse threatens Covid-19 recovery in Israel. A9
Harris to lead effort to ease border influx... A10
Move Over, ‘Charlotte’s Web’— Kids’ Books Look to Algorithm i
BUSINESS & FINANCE Amazon faces pressure from employees to change working conditions. B1
ation of new titles in-house. Epic’s team knows that children prefer owls to chickens and chickens to hedgehogs. Kids hunt for unicorns almost twice as often as they look for mermaids. Volcanoes are more popular than tsunamis, which are more popular than earthquakes. The Titanic is bigger than cowboys, pizza is bigger than cake, science is bigger than art and “poop” is bigger than all of them. During the panlike me demic, Epic has more than doubled its reach to 50 million children globally, most of them in the U.S. The online subscription children’s book service, founded in 2013 and based in Redwood City, Calif., is free to Please turn to page A11
Before Greensill Failed, It Relied on Wall Street BY DUNCAN MAVIN AND JULIE STEINBERG LONDON—The founder of Greensill Capital spoke frequently about disrupting big banks. But before the financial startup collapsed this month, it relied on the apparatus of Wall Street to fuel its expansion. Greensill’s closest Wall Street relationship was with Credit Suisse Group AG, which provided it financing through $10 billion of investment funds. But a clutch of other big players—including Citigroup Inc., Morgan Stanley, Ernst & Young, and Moody’s Investors Service—played key roles in Greensill’s rise. Citigroup expanded its business with Greensill despite repeated warnings internally not to do so because of reputational issues, according to people familiar with the Citigroup-Greensill relationship. The big U.S. bank operated a trust that processed payments
for Greensill’s borrowers, forwarding money on to investors in the Credit Suisse funds. Citigroup also worked on a failed last-ditch attempt to raise fresh capital for the startup. Greensill was founded in 2011 by former Morgan Stanley and Citigroup banker Lex Greensill. The firm specialized in supply chain finance, a form of short-term corporate lending. Greensill planned to outmaneuver big banks that dominate the industry with better technology and by offering the service to more clients. Many of Greensill’s clients were bluechip companies, though it also made other, riskier loans that were longer-term or for borrowers that were more precarious. Greensill filed for bankruptcy earlier this month after it lost credit insurance that was crucial to its business. Credit Suisse suspended the investment funds. Greensill’s bank in Germany is under investigation Please turn to page A4