The New York Times - USA (2020-07-28)

TUESDAY, JULY 28, 2020B1

Y

TECH ECONOMY MEDIA FINANCE

3 POLICY

Big banks may get an easing

of capital requirements in the

stimulus package being put

together by Republicans.

5 VIRUS FALLOUT

Want to get out of the house?

Hotels are promoting the

appealing safety of a

nostalgic family road trip.

7 SPORTS

Forty years after the

boycotted Moscow Games,

U.S. athletes are still waiting

for a meaningful apology.

WASHINGTON — Last September,
Jeff Bezos, Amazon’s chief execu-
tive, rattled off terrifying statistics
about the warming planet from
the storied National Press Club,
two blocks from the White House.
Then he said he had something ex-
citing to announce.
But when he uncovered a tow-
ering sign with the news, Ama-
zon’s name was nowhere in sight.
Instead, the sign introduced the
Climate Pledge, a project to re-
duce carbon emissions from com-
panies. Yes, Amazon would be the
first, and at the time only, signa-
tory. But this was a bigger push,
Mr. Bezos said.
It was Amazon news, couched
as something grander.
The event reflected Mr. Bezos’
approach to the nation’s capital.
He has jumped at opportunities to
cast himself as a statesman — the
savior of The Washington Post,
who holds court among the coun-
try’s elite. At the same time, he
has eschewed the day-to-day
grind of bolstering Amazon’s in-
fluence with policymakers.
But that changes on Wednes-
day, when Mr. Bezos testifies be-
fore Congress for the first time. He
will be joined by the chief execu-
tives of Alphabet, Apple and Face-
book as part of lawmakers’ inves-
tigations into the power of the
largest tech companies. He is ex-
pected to face an onslaught of cri-
tiques and questions, on topics as
varied as Amazon’s labor condi-
tions and market power and his
status as the richest person in the
world.
It’s the kind of appearance Mr.
Bezos had steadfastly avoided.

After Years

Avoiding It,

Bezos Gets

The Hot Seat

Amazon chief will face a

Congress eager to grill

him on an array of topics.

By DAVID McCABE

and KAREN WEISE

CONTINUED ON PAGE B3

The number of people flying today
is down about 75 percent from a
year ago. And in the fight to at-
tract those few passengers who
remain, airlines have promoted
their health and safety policies.
Delta Air Lines has tried to
stake a claim as one of the most
cautious companies in the indus-
try by promising to leave middle
seats empty even as American
Airlines and United Airlines are
selling as many seats as they can.
Delta has also said that it cleans
planes between flights, tests all
employees for the coronavirus
and aggressively enforces a mask
requirement. On Monday, it an-
nounced a partnership with
Lysol’s parent company aimed at
improving Delta’s cleaning prac-
tices.
The man responsible for all of
those initiatives is Bill Lentsch, a
30-year veteran of the airline who
is its chief customer experience
officer. In an interview, he ex-
plained Delta’s approach. Below
are edited excerpts from the con-
versation.

What does Delta hope to get
out of working with Lysol?

We hope to tap the 130 years of ex-
pertise that Lysol has — to trans-
pose it into the cabin, into the lava-
tories on board the aircraft, into
our facilities. Through our survey
data, we hear that our cabins are
very clean, but one thing our
customers say is “The lavatories
are very clean when we get on
board, but how can you keep them
clean throughout the flight?” And
this is the first area that we are go-

Delta Uses

Caution

In Service

Of Safety

By NIRAJ CHOKSHI

CONTINUED ON PAGE B5

Something shiny and bright is

beckoning investors accustomed

to the gloomy days of 2020: gold.

In recent days, gold prices have

hit record highs. For the year, gold

is up 27 percent, a performance

that puts it ahead of most stock,

bond and commodity markets.

On Monday, the price of gold fu-

tures on the New York Mercantile

Exchange rose 1.8 percent to more

than $1,931 an ounce. Investors

last week had already pushed gold

prices past the record last set in

August 2011.

Gold might seem out of date in a

modern investing portfolio, but

several developments — all tied to

the coronavirus — have banded

together to juice demand.

The pandemic has pushed the

global economy into one of the

sharpest downturns on record.

The International Monetary Fund

predicts that this year, the world

economy will shrink by nearly 5

percent. The plunge prompted

central banks everywhere, most

important the Federal Reserve, to

pump hundreds of billions of dol-

lars into financial markets, with

the goal of propping up flailing

economies.

But those billions aren’t coming

from a storehouse; rather, central

banks are creating fresh currency.

The increase in money supply

lowers interest rates and raises

the amount of a particular cur-

rency, such as the dollar, in circu-

lation. And over time, these moves

can both increase inflation (lower

interest rates typically spur eco-

nomic activity) and weaken the

value of a currency.

Right now, investors are taking

all of that into account and deter-

mining that buying gold — which

is traditionally considered an in-

vestment that holds its value over

time — is the best thing they can

do to shield themselves from infla-

tion and weakening of so-called

fiat, or paper, currencies. As a re-

sult, money flows into gold invest-

ments have surged in recent

months as central banks have

stepped up their fight against the

downturn.

“It’s all monetary policy,” Ma-

thieu Savary, a macroeconomic

strategist with BCA Research,

said of the recent rise in gold

prices. “It’s very, very easy mone-

tary policy as far as the eye can

see and gold loves it.”

Those who traditionally invest

in gold say it is a reliable but safe

way to store cash. There are, how-

ever, other investments, such as

government bonds — especially

those issued by the United States

Treasury — where jittery invest-

As Investors Rush Toward Gold, Its Price Breaks Records

By MATT PHILLIPS

CONTINUED ON PAGE B4

TOKYO — Rieko Kawanishi is the first to admit

that the pearl-laden mask she designed is not

the most effective defense against the coro-

navirus. “It’s full of holes,” she said with a

laugh.

But her handmade face covering, which she

recommends wearing over a regular mask, re-

flects a sudden burst of creative attention in

the worlds of fashion and technology to a hum-

ble product that had been largely unchanged

for decades.

“After the pandemic, there were so many

more places where, for the first time, you abso-

lutely had to wear a mask,” said Ms. Kawan-

ishi, a jewelry designer in Tokyo. “I just

thought, I want to make something elegant.”

As the virus continues its relentless spread,

with rules on mask-wearing being tightened in

many places around the world, consumers are

starting to demand more of the coverings that

will guard their public breaths for the foresee-

able future.

In response, companies and designers have

flooded the market with alternatives to the

common throwaway surgical masks that

spurred Ms. Kawanishi to action.

Inventors have dreamed up masks with mo-

torized air purifiers, Bluetooth speakers and

even sanitizers that kill germs by heating the

face covering (but hopefully not the face) to

Masks Get an Upgrade

For the Long Term

Motorized air purifiers and heated sanitizers. Breathable fabrics

and chic prints. With face coverings here to stay, consumers

are starting to demand more than cheap throwaways.

NORIKO HAYASHI FOR THE NEW YORK TIMES

By BEN DOOLEY

and HISAKO UENO

CONTINUED ON PAGE B4